Crypto News: Is the SEC Preparing to Settle the case Against Ripple?

Key Insights:

• SEC drops the case against Ripple co-founder Chris Larson and CEO Brad Garlinghouse.
• BTC-spot ETF amendment filings to the SEC signal progress toward the first US crypto-spot ETF.
• BTC and ETH responded favorably to the Ripple news and hopes of the SEC approving BTC-spot ETF applications.

SEC Drops Charges Against Ripple CEO Brad Garlinghouse and Co-Founder Chris Larson

On Thursday, news hit the wires of the SEC dropping the charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larson.

In addition to dropping the charges, the court filing highlighted an intent to meet with Ripple and discuss the possibility of a briefing schedule about the ongoing SEC v Ripple case.

Ripple co-founder Chris Larson had this to say about the news,

“The last 3 years we’ve seen a rogue administration state that needs to be held accountable for its actions – not just an investigation into the conflicts of interests that led to these baseless claims, but how the US actively demolished its global standing as the home for innovation, with thousands of jobs moving overseas.”

The SEC filed charges against Ripple, Chris Larson, and Brad Garlinghouse in 2020.

A settlement in the SEC v Ripple case would leave the SEC v Binance and SEC v Coinbase (COIN) for the markets to follow.

BTC-Spot ETF Amendments Suggest SEC Approvals Are in Sight

On Thursday, Grayscale Investments filed a Form S-3 Registration Statement with the SEC in support of the request to convert Grayscale Bitcoin Trust to an ETF.

Grayscale won its case against the SEC on appeal in August. The court ruled that the SEC must reconsider the Grayscale application to convert the Grayscale BTC Trust to an ETF.

The race to launch the first BTC-spot ETF is heating up. The amended Grayscale and Fidelity filings suggest progress toward a US BTC-spot ETF market.

Mike Novogratz, CEO of crypto asset management firm Galaxy Digital, predicted the approval of a BTC-spot ETF in 2023. Bloomberg Intelligence ETF analyst James Seyffart puts the probability of the SEC approving the Ark BTC-spot ETF application at 90%.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC breakout from the Thursday high of $28,937 would support a move to the $29,193 resistance level. Favorable BTC-spot ETF-related news will likely fuel buyer demand.

However, a drop below $28,500 would give the bears a run at the $28,187 support level.

The current spike in US Treasury yields and the Middle East conflict remain headwinds for riskier assets.

The 14-Daily RSI reading of 64.65 indicates a BTC move to the $29,193 resistance level before entering overbought territory.

Ethereum Analysis

ETH sat below the 50-day and 200-day EMAs, affirming bearish price signals.

An ETH return to $1,600 would give the bulls a run at the $1,626 resistance level and 50-day EMA. Selling pressure will likely intensify at $1,620. The 50-day EMA is confluent with the $1,626 resistance level.

ETH-spot ETF-related news will also influence the buyer appetite for ETH.

However, a drop below $1,550 would give the bears a run at the $1,502 support level.

The 14-Daily RSI reading of 43.09 suggests an ETH break below the $1,502 support level before entering oversold territory.