XRP News: SEC’s Response to Fake BTC-Spot ETF News Sparks Crypto Community Debate

Key Insights:

• XRP dipped 1.38% on Tuesday, partially reversing a 2.22% gain from Monday.
• SEC drew crypto market criticism for its reaction to the fake Blackrock BTC-spot ETF approval news.
• Coinbase reacts to a new crypto market regulatory activity.

The Tuesday Overview

On Tuesday, XRP slid by 1.38%. Partially reversing a 2.22% gain from Monday, XRP ended the day at $0.4913.

Crypto Community Responds to the SEC Take on Fake News

The fake news of the SEC approving the Blackrock (BLK) BTC-spot ETF application remained a hotly debated topic on Tuesday.

The SEC responded to the news on X (formerly Twitter), saying,

“Careful what you read on the internet. The best source of information about the SEC is the SEC.”

The statement drew criticism from the crypto community. Amicus Curiae attorney and CryptoLaw US founder John E. Deaton responded,

“Here’s a surprise: I disagree with the SEC’s latest statement. The best source of information about the SEC is NOT the SEC. Confirmation bias and self-serving statements by the SEC disqualify it.”

Deaton went on to say,

“The Appellate Court unanimously concluded the SEC’s denial of a spot ETF was utter nonsense. Finally, a federal judge in the SDNY called the SEC lawyers hypocrites and stated they lacked faithful allegiance to the law. OUCH!! So, when it comes to the SEC, I choose to listen to judges. And man, are they speaking loudly.”

There were no updates in the SEC v Ripple case to influence investor sentiment on Monday. The lack of news left XRP in the hands of the broader crypto market.

While the Ripple defense team remains silent before the SEC v Ripple trial in October, Coinbase (COIN) remains vocal.

Digital Financial Assets Law Draws Comment from Coinbase

Coinbase Chief Legal Officer Paul Grewal reacted to Assembly Bill 39, establishing the Digital Financial Assets Law, saying,

“While we’re concerned with ambiguities in what was passed, we’re encouraged by Gavin Newsom’s statement calling this out, and emphasizing that “it is essential that we strike the appropriate balance between protecting consumers from harm and fostering responsible innovation.”

Grewal went on to say,

“California DFPI should exercise its authority to address this without delay. And Congress should see this as yet more evidence of the very real need for clear rules at the federal level.”

On Friday, California Governor Gavin Newsom approved Assembly Bill 39. The Bill calls on the Department of Financial Protection and Innovation (DFPI) to create a robust regulatory framework for crypto activities.

XRP Price Action

Daily Chart

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

An XRP drop below $0.4850 would give the bears a run at the $0.4700 support level. SEC vs. Ripple and Coinbase case-related news will remain focal points. However, Fed rate hike bets and news updates on the Middle East conflict warrant consideration.

An XRP move through the $0.5042 resistance level would support a move to the EMAs.

The 41.82 14-day RSI reading suggests a fall to the $0.4700 support level before entering oversold territory.

4-Hourly Chart

In the 4-hourly Chart, XRP hovered below the 50-day and 200-day EMAs, reaffirming bearish price signals.

An XRP break above the 50-day EMA would give the bulls a run at the $0.5042 resistance level.

However, a fall below $0.4850 would support a move to the $0.4700 support level.

The 4-hourly RSI, with a reading of 47.20, indicates an XRP fall below $0.48 before entering oversold territory.