XRP News: Democrats vs. Republicans, the US Courts, and the SEC vs. Ripple

Key Insights:

• XRP declined by 1.74% on Sunday, ending the session at $0.6096.
• Anti-crypto sentiment from Capitol Hill resonated after recent US lawmakers and SEC maneuvers.
• On Monday, SEC activity, BTC-spot ETF-related news, and SEC v Crypto case-related updates are focal points.

The Sunday Overview

On Sunday, XRP declined by 1.74%. After a 0.78% gain on Saturday, XRP ended the day at $0.6096.

Anti-Crypto Sentiment on Capitol Hill Resonated on Sunday

On Sunday, amicus curiae attorney John E. Deaton discussed Senator Elizabeth Warren’s anti-crypto bill, saying,

“20% of the US Senate has already agreed to support her defacto ban on Crypto and Bitcoin in the US. I know for a fact she is using her reelection as an opportunity to create and control the Crypto narrative. She is the single biggest threat to freedom in the United States.”

Deaton responded to increasing concern over Senator Warren’s Digital Asset Anti-Money Laundering Act. Deaton added,

“This bill won’t pass the House this year. If the Senate and House and President goes all Democrat in 2024, then early 2025 language from this bill could be passed. It’s not about now, it’s about the long game.”

A Democratic Party clean sweep and control of the Senate and the House of Representatives could be dire for the US digital asset space. Significantly, SEC Chair Gary Gensler and the SEC may receive more authority and a framework to regulate by enforcement.

In response to another post from an XRP Community post, Deaton said,

“Ask Lindsay Graham, a Republican, who supports it. Ask Angus King, an Independent, who supports it. Ask Joe Manchin, a Democrat, turned Independent, who supports it. It’s not that this exact Bill will be passed. People are missing the forest for the trees. It’s the national narrative regarding Crypto that is being framed and controlled.”

Deaton added,

“The danger isn’t this bill per se – it’s whether certain aspects or certain language contained in this bill end up in other legislation. Look back at the infrastructure bill and what was attempted as an example.”

The amicus curiae attorney concluded,

“Finally, NO LEGISLATION is likely to be passed in 2024, during an election year. But if Elizabeth Warren and the Democrats win the House, Senate, and Presidency, it will get passed in 2025.”

The Courts and Senator Warren Go Head-to-Head

In November 2024, the crypto market will know the outcome of the US Presidential race. While a Democratic clean sweep would be the worst outcome, a Republican Party victory could be a boon for XRP and the broader market.

Two bills are on Capitol Hill, targeting the US digital asset space. The first is the Responsible Financial Innovation Act. US Senators Cynthia Lummis and Kirsten Gillibrand filed the Responsible Financial Innovation Act in 2022.

The Lummis-Gillibrand bill would give more powers to the CFTC to regulate the US digital asset space. Significantly, the Lummis-Gillibrand bill supports innovation while protecting US retail investors.

The second is the Digital Asset Anti-Money Laundering Act, which would introduce banking regulations. Banking-style regulations could give the SEC more authority.

The two bills could have significantly different effects on the US digital asset space. However, the US court rulings on the SEC v Coinbase (COIN) and SEC v Ripple cases could thwart any attempts to classify cryptos as securities and Warren’s efforts to impose banking-style regulations on crypto-related firms.

XRP Price Action

Daily Chart

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

An XRP break above the 50-day EMA would support a run at the $0.6354 resistance level.

SEC activity, US lawmaker chatter, and SEC v Crypto case-related news remain the focal points.

However, a drop below the $0.60 handle would give the bears a run at the $0.5835 support level.

The 14-day RSI reading, 43.20, suggests a fall to the $0.5835 support level before entering oversold territory.

4-Hourly Chart

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

An XRP break above the EMAs would support a move to the $0.6354 resistance level.

However, an XRP fall through the $0.60 handle would bring the $0.5835 support level into play.

The 4-hourly RSI, with a reading of 37.42, suggests an XRP drop to the $0.60 handle before entering oversold territory.