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XRP News Today: An SEC Settlement and an XRP Breakout to $1.00?
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Key Points:
- XRP rallied 3.49% on Wednesday, July 24, closing the session at $0.6193.
- The highly anticipated SEC closed meeting looms as investors bet on a settlement in the Ripple case.
- US politics will remain a focal point as Capitol Hill tilts toward a bipartisan stance on crypto.
In this article:
XRP Bucks the Broader Market Trend
On Wednesday, July 24, XRP rallied 3.49%. Reversing a 1.66% loss from Tuesday, July 23, XRP closed the session at $0.6193. XRP bucked the broader market, which fell by 1.37% to a total crypto market cap of $2.319 trillion.
SEC Closed Meeting Looms
The SEC will hold a closed meeting on July 25. According to the Sunshine Act Notice, agenda items include:
- Institution and settlement of administrative proceedings.
- Resolution of litigation claims.
- Other matters relating to examinations and enforcement proceedings.
The Sunshine Act Notice sparked speculation about a settlement in the SEC vs Ripple case.
The timing of the closed meeting may be significant. Judge Analisa Torres is considering the arguments to decide the penalty Ripple must pay for violating US securities laws.
SEC vs. Ripple: Remedies-Related Court Filings
In July 2023, Judge Analisa Torres ruled that Ripple breached US securities laws for selling unregistered XRP to institutional investors.
In March, the SEC presented arguments to pursue a $2 billion penalty and an injunction prohibiting XRP sales to institutional investors. Significantly, the SEC alleged that Ripple continued violating US securities laws after the December 2020 complaint (post-complaint).
Ripple challenged the SEC’s allegations in its opposition brief, stating that post-complaint XRP sales complied with US securities laws. XRP sales to institutional investors included:
- Sales to accredited investors, which are exempt under US securities laws.
- XRP sales via On-Demand Liquidity (ODL) agreements that prevent profits or losses and, therefore, cannot meet the Howey test’s third prong.
Ripple also proposed a $10 million penalty in its opposition brief, stating that the SEC never accused it of recklessness or fraud.
Settlement Speculation and Implications
In April 2024, the SEC filed a remedies-related reply brief detailing the calculations for a $102.6 million penalty floor for the Ripple case. The SEC’s floor is significantly higher than Ripple’s proposed penalty.
Optically, a $10 million penalty could also increase scrutiny of the SEC’s regulation through enforcement assault on the US digital asset space.
In November 2023, candidate for US Senate in Massachusetts, John E. Deaton, predicted Ripple would pay less than its $150 million legal bill. Deaton also considered how crypto and non-crypto investors would view the SEC case against Ripple. The electorate may wonder how 100s of millions of dollars can be spent on legal fees only for a modest penalty.
Shifting Political Dynamics and Crypto Regulation
Optics became important when US President Joe Biden withdrew from the US Presidential Election Race. Democratic Party front-runner Kamala Harris will also target the US crypto vote.
On Tuesday, July 23, news hit the wires of Kamala Harris planning to attend the Bitcoin Conference to challenge Trump for the crypto vote. The crypto vote could prove significant. In 2023, Coinbase (COIN) kickstarted the #StandWithCrypto Campaign to raise crypto awareness on Capitol Hill. At the time, 52 million Americans owned crypto.
Kamala Harris has the opportunity to pivot away from the anti-crypto establishment. Bad press on SEC’s legal battles with crypto firms would not help Harris’s election chances.
Ripple CEO Weighs In on Political Developments
On Wednesday, Ripple CEO Brad Garlinghouse commented on US politics, Kamala Harris, and the crypto vote, stating,
“VP Harris is no stranger to Silicon Valley and has an incredible opportunity to provide a reset on critical issues for US competitiveness (like crypto regulation). I’ll keep an open mind for now – but also agree that if she uses the same Elizabeth Warren-like rhetoric, then she has miscalculated the political liability that is Gary Gensler.”
Looking Ahead: Implications for XRP and the Crypto Market
The final stage of the SEC vs. Ripple case coincides with the shift in focus on Capitol Hill toward the crypto vote. US lawmakers may pressure SEC Chair Gensler to end his assault on the US digital asset space.
A more bipartisan stance on crypto would boost XRP demand and support a return to $1.00.
Investors should remain alert as the SEC closed meeting looms. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.
XRP Price Action
Daily Chart
XRP remained comfortably above the 50-day and 200-day EMAs, confirming the bullish price trends.
An XRP return to the July 17 high of $0.6367 would give the bull a run at the $0.6609 resistance level. A break above the $0.6609 resistance level could signal a move toward the $0.70 handle.
SEC vs. Ripple case-related updates require consideration.
Conversely, an XRP drop below the $0.5739 supported level could give the bears a run at the 200-day EMA.
With a 14-day RSI reading of 68.53, XRP could return to the July 17 high of $0.6378 before entering overbought territory.
About the Author
Bob Masonauthor
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.
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