XRP News: SEC v Ripple, Janet Yellen, and SEC v Coinbase

Key Insights:

• XRP gained 1.68% on Wednesday, ending the session at $0.5136.
• US lawmaker commentary and SEC vs. crypto cases drew investor interest.
• On Thursday, SEC vs Ripple and Coinbase case-related news warrants investor attention.

The Wednesday Overview

On Wednesday, XRP gained 1.68%. Reversing a 0.18% loss from Tuesday, XRP ended the session at $0.5136.

US Lawmakers Call for Congress to Pass Legislation for Cryptos

On Wednesday, US lawmakers responded to US Treasury Secretary Janet Yellen’s call for crypto legislation.

Senator Cynthia Lummis shared the Yellen address from Tuesday, saying,

“Could not agree more. Let’s pass Lummis-Gillibrand to protect consumers, give the crypto asset community a home in America and continue our nation’s reputation as the undisputed home of financial innovation.”

Senators Lummis and Kirsten Gillibrand proposed the Responsible Financial Innovation Act in 2022. Successful passage of the bill through Congress could give the Commodities Futures Trading Commission (CFTC) more oversight of the US digital asset space. Significantly, the Lummis-Gillibrand bill is favored across the US crypto market.

Janet Yellen testified at a House Financial Services Committee hearing, saying,

“The council is focused on digital assets and related risks, such as from runs on crypto asset platforms and stablecoins. Potential vulnerabilities from crypto asset price volatility and the proliferation of platforms acting outside of or out of compliance with applicable laws and regulations. Applicable rules and regulations should be enforced, and Congress should pass legislation to provide for the regulation of stablecoins and of the spot market for crypto assets that are not securities. We look forward to continuing to engage with Congress on this.”

The comments regarding the need for crypto legislation garnered crypto market interest.

SEC v Coinbase: The Motion to Dismiss

On Wednesday, Ripple Chief Legal Officer Stuart Alderoty had this to say about the Yellen testimony,

“In Coinbase, the SEC told the judge that crypto is a “rounding error,” no legislative gaps exist and thus, crypto can be “swept” into its authority. Yesterday, Sec. Yellen told Congress crypto legislation is needed to fill regulatory gaps. Both statements can’t both be true.”

Stuart Alderoty referred to the ongoing SEC v Coinbase (COIN) case. Treasury Secretary Yellen’s testimony regarding the need for crypto legislation could impact the SEC’s position.

In August, Coinbase filed a Motion to Dismiss (MTD), arguing the SEC lacks the statutory authority to regulate crypto exchanges. The crypto market awaits a court ruling on the MTD. In January, the SEC and Coinbase delivered oral arguments regarding the MTD. Legal experts believed Coinbase gave better arguments.

There were no updates from the ongoing SEC v Ripple case to influence near-term XRP trends. However, BTC-spot ETF market updates drove demand for BTC, supporting an XRP return to the $0.51 handle.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, affirming bearish price signals.

A return to the $0.52 handle would support a move toward the $0.5470 resistance level and the 50-day EMA. An XRP break above the 50-day EMA would bring the 200-day EMA into play.

SEC activity, US lawmakers, and SEC v crypto case-related news need consideration.

However, a break below the $0.5042 support level would bring the $0.4700 support level into play.

The 14-day RSI reading, 41.92, suggests an XRP fall to the $0.49 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day while remaining below the 200-day EMA, sending bullish near-term but bearish longer-term price signals.

An XRP breakout from the $0.52 handle would support a move toward the 200-day EMA and the $0.5470 resistance level.

However, a break below the 50-day EMA would bring the $0.5042 support level into play.

The 4-hourly RSI, with a reading of 58.43, suggests an XRP move to the 200-day EMA before entering the overbought territory.