XRP News: SEC v Ripple Recap as the November 9 Countdown Begins

Key Insights:

• XRP gained 1.09% on Friday, ending the session at $0.6124.
• Countdown to the November 9 briefing schedule deadline begins.
• Bill Hinman and Programmatic Sales ruling could be central to settlement talks.

The Friday Overview

On Friday, XRP gained 1.09%. After reversing a 0.44% loss from Thursday, XRP ended the day at $0.6124.

November 9: Countdown Begins on Briefing Schedule Deadline

According to the Court order dated October 24, 2023, the SEC and Ripple must propose a briefing schedule on related charges in the SEC v Ripple case by November 9, 2023. After the Programmatic Sales court ruling, the matter of the institutional sales of XRP remains.

However, since the October 24 court order, neither the SEC nor Ripple have provided updates from talks. If the parties cannot propose a briefing schedule, the court will set a contested briefing schedule date.

There has been plenty of debate about the SEC tactics in the case since the Programmatic Sales ruling. After the SEC failed to appeal the ruling through an interlocutory appeal, the SEC could be planning a post-trial appeal. The SEC v Ripple case must conclude before the SEC can appeal previous motions and rulings. However, the SEC won’t be able to appeal settlements.

Considering the dynamics, the SEC could notch a much-needed win with a punitive disgorgement in case of a settlement. The SEC will then likely redirect its attention to an appeal of the Programmatic Sales ruling.

However, the terms of any settlement could prove pivotal. Ripple may agree to a punitive disgorgement if the SEC accepts the Programmatic Sales ruling. There is also the matter of the Hinman speech-related documents.

Before the ruling on Programmatic Sales, the SEC unsuccessfully tried to shield the documents under the attorney-client privilege on at least six occasions.

Bill Hinman: The Infamous Speech and the Documents

In June 2018, Bill Hinman delivered a speech saying bitcoin (BTC) and ethereum (ETH) are not securities. At the time of the speech, Hinman was the SEC Director of the Division of Corporation Finance.

The contentious issue with the speech is Hinman’s long-standing association with the law firm Simpson Thacher. Simpson Thacher is part of a group that promotes Enterprise Ethereum. Hinman returned to Simpson Thacher after leaving the SEC.

The speech-related documents reportedly show internal discussions with the SEC ethics team. At the time of the speech, the documents suggest Hinman continued to meet with Simpson Thacher despite warnings from the Ethics team.

In April 2022, the US Government Watchdog Empower Oversight successfully compelled the release of emails related to communications between Hinman and the Ethics team.

In December 2021, Empower Oversight sued the SEC, alleging former SEC officials were biased. The government watchdog also alleged Hinman received millions of dollars from his former employer while assisting in the SEC’s oversight of cryptos. Notably, Empower Oversight alleged more than one SEC official being biased.

In October, Ripple CEO Brad Garlinghouse reacted to a Squawk Box interview with former SEC Chair Jay Clayton. The Ripple CEO said,

“Watching this clip makes my blood boil. The hypocrisy is shocking. […]. (As a reminder, Jay Clayton brought the case against Ripple, me, and Chris Larsen. And left the building the next day).”

The former SEC Chair referred to SEC litigation tactics, saying,

“If we’re not losing cases, if we’re not being pushed back on by the courts, we’re not doing enough.”

In October 2023, the SEC dropped the charges against Ripple CEO Brad Garlinghouse and co-founder Chris Larsen. The SEC filed the charges in late 2020.

XRP Price Action

Daily Chart

XRP held above the 50-day and 200-day EMAs.

An XRP break above the Thursday high of $0.6268 would support a move to the $0.6354 resistance level.

SEC v Ripple case-related news and chatter remain the main focus as the November 9 deadline approaches.

An XRP drop below $0.60 would bring the $0.5835 support level and the trend line into play.

The 75.27 14-day RSI reading shows XRP in overbought territory. XRP may face increasing selling pressure unless there is a catalyst related to XRP.

4-Hourly Chart

In the 4-hourly Chart, XRP remains above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP return to $0.62 would give the bulls a run at the $0.6354 resistance level.

However, a fall to $0.60 would support a move to the $0.5835 support level and 50-day EMA. Buying pressure could intensify at $0.5830. The 50-day EMA is confluent with the $0.5835 support level.

The 4-hourly RSI, with a reading of 58.97, indicates an XRP move to the $0.6354 resistance level before entering overbought territory.