XRP News: SEC v Ripple, Coinbase, and Terraform Labs

Key Insights:

• XRP gained 0.08% on Thursday, ending the session at $0.6352.
• Judge Rakoff ruled Terraform Labs and founder Do Kwon failed to register TerraUSD and Luna as securities.
• SEC v Coinbase and SEC v Ripple remain the focal points for the crypto market.

The Thursday Overview

On Thursday, XRP rose by 0.08%. After a 2.01% gain on Wednesday, XRP ended the day at $0.6352.

Programmatic Sales Ruling Provides XRP Price Support

On Thursday, Judge Jed Rakoff gave the SEC a much-needed win in the US courts. Judge Rakoff reportedly ruled that Terraform Labs and its founder, Do Kwon, violated securities laws by failing to register TerraUSD and Luna as securities.

Judge Rakoff denied summary judgments from the SEC and the defendants. As a result, the trial will begin on January 29, 2024.

The broader crypto market ended Thursday in negative territory. Significantly, the total crypto market cap fell by 1.67% ($27.59 billion) to $1,625 billion.

However, XRP bucked the broader market trend. In July, Judge Analisa Torres ruled XRP was not a security in Programmatic Sales. The ruling likely provided XRP price support on Thursday. Significantly, Judge Rakoff targeted the Programmatic Sales ruling in August. Judge Rakoff stated Judge Torres made an error in her ruling in the ongoing SEC v Ripple case.

The latest ruling favoring the SEC will likely fuel bets on the SEC appealing against the Programmatic Sales ruling. However, the SEC must wait until the Ripple case concludes before filing an appeal. An appeal could extend the case into 2025.

On Thursday, the Wall Street Journal published an article, ‘Big Battles Loom in SEC’s War on Crypto.’

The WSJ article referenced Ripple Chief Legal Officer Stuart Alderoty, saying,

“Still, the SEC’s willingness to sue crypto projects doesn’t scare the industry as much as it used to, according to Stuart Alderoty, chief legal officer of Ripple Labs. Most of the SEC’s early enforcement actions yielded fines against smaller crypto firms, he said.”

Alderoty reportedly went on to say,

“The process is the punishment,” Alderoty said. “It’s a very expensive process. And it forced them into settlements.”

The WSJ also referred to the SEC v Coinbase case. Bloomberg Intelligence litigation analyst Elliot Stein reportedly gave Coinbase (COIN) a 70% chance of winning.

SEC v Coinbase: The Motion to Dismiss

In August, Coinbase filed a motion to dismiss (MTD), arguing the SEC has no statutory authority to regulate crypto exchanges. Presiding Judge Katherine Failla will hear oral arguments on January 17, 2024. If Judge Failla grants the MTD, the SEC could lose its right to regulate by enforcement.

In June 2023, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

XRP Price Action

Daily Chart

XRP sat above the 50-day and 200-day EMAs, sending bullish price signals.

An XRP break above the $0.6354 resistance level would support a move to the $0.65 handle.

SEC activity, regulatory scrutiny, and BTC-spot ETF-related news are focal points.

However, a fall below the 50-day EMA would give the bears a run at the $0.5835 support level.

The 14-day RSI reading, 51.70, suggests an XRP return to the $0.65 handle before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP move through the $0.6354 resistance level would give the bulls a run at the $0.65 handle.

However, a fall through the 50-day and 200-day EMAs would bring the $0.5835 support level into play.

The 4-hourly RSI, with a reading of 50.07, suggests an XRP move to the $0.65 handle before entering overbought territory.