XRP News: Brad Garlinghouse Talks Crypto ETFs and SEC v Ripple

Key Insights:

• XRP gained 0.10% on Tuesday, ending the session at $0.5760.
• Ripple CEO Brad Garlinghouse spoke about the SEC and the ongoing SEC v Ripple case at Davos.
• On Wednesday, the focus will be on the SEC v Coinbase hearing and SEC v Ripple-related updates.

The Tuesday Overview

On Tuesday, XRP gained 0.10%. Partially reversing a 0.12% loss from Monday, XRP ended the session at $0.5760.

Ripple CEO Brad Garlinghouse Targets SEC Chair Gensler

On Tuesday, Ripple CEO Brad Garlinghouse spoke to CNBC at Davos, targeting SEC Chair Gary Gensler. Garlinghouse had this to say about Gensler,

“I do think the Chair of the SEC, Gary Gensler, has become a political liability in the United States and I think he’s not acting in the best interest of the citizenry, he’s not acting in the best interest of the long-term growth of the economy. I don’t understand it and I think at some point there will be a new chair of the SEC and I think that will be a good thing for the American people.”

Asked about the chances of an ETH-spot ETF, Garlinghouse believes it is certain to happen. However, Garlinghouse held back from giving his views on an XRP-spot ETF.

Garlinghouse also talked about the SEC v Ripple case, discussing the remaining part of the case on XRP sales to institutional investors. Significantly, Garlinghouse stated that no institutional investors lost money after acquiring XRP. The comment is significant as the SEC and Ripple progress through remedies-related discovery.

In the US case SEC v Govil, the 2nd Circuit Court held that the SEC may not ask for a punitive penalty without proving investors suffered actual financial harm. In the words of Ripple Chief Legal Officer Stuart Alderoty, ‘No harm, no foul.’

The focus remains on the SEC v Ripple case, and SEC plans to appeal the Programmatic Sales of XRP ruling. However, investors must consider the ongoing SEC v Coinbase (COIN) case.

SEC v Coinbase: Motion to Dismiss Oral Arguments

On Wednesday, January 17, the SEC and Coinbase will present oral arguments on the Coinbase motion to dismiss (MTD). Coinbase filed the MTD in August, arguing that the SEC lacks the statutory authority to regulate US crypto exchanges.

The SEC could use the Terraform Labs ruling that TerraUSD and Luna are securities. However, Coinbase may highlight the lack of crypto legislation giving the SEC authority over digital assets.

It is unlikely that Judge Katherine Failla will rule on the motion today. Nonetheless, the markets will likely respond to updates from the court hearing.

XRP Price Action

Daily Chart

XRP sat below the 50-day EMA while remaining above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

An XRP move through the $0.5835 resistance level would bring the 50-day EMA into play. A return to the $0.60 handle would support a move toward the $0.6354 resistance level.

On Wednesday, the focus will remain on SEC v Coinbase case and SEC v Ripple case-related updates.

However, a break below the 200-day EMA would give the bears a run at the $0.5470 support level.

The 14-day RSI reading, 43.44, suggests an XRP fall to the $0.5470 support level before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP remained below the 50-day and 200-day EMAs, affirming bearish near-term price signals.

An XRP move through the 50-day EMA and the $0.5835 resistance level would bring the 200-day EMA into play.

However, a break below the $0.57 handle would support a fall toward the $0.5470 support level.

The 4-hourly RSI, with a reading of 47.08, indicates an XRP move to the $0.5470 support level before entering oversold territory.