XRP News Today: Can XRP Break $3 Amid SEC Appeal Uncertainty? BTC hits $95k

SEC vs. Ripple: Implications of SEC Chair Transition for XRP

On Wednesday, January 1, investor focus returned to the SEC v Ripple case as crucial developments unfold in January 2025. Key dates include:

• 15 January: Deadline for the SEC’s appeal-related opening brief.
• 17 January: Democrat SEC Commissioner Jaime Lizarraga leaves the agency.
• 20 January: SEC Chair Gary Gensler steps down and Trump’s Inauguration Day.

Investor hopes of the SEC withdrawing its appeal drove XRP to a 2024 high of $2.9070 in December 2024. However, XRP dropped below $2 before finding support.

The best-case scenario for XRP would be a withdrawal of the appeal by January 15, potentially driving the token past its January 18 record high of $3.5505.

Alternatively, the SEC could proceed with an opening brief, only for the incoming SEC Chair Paul Atkins and Commissioners to vote for withdrawal.

Incoming SEC Chair Paul Atkins and Trump-appointed Commissioners to replace Carline Crenshaw and Jaime Lizarraga may likely support ending the Ripple case. However, XRP could face selling pressure if the SEC files a well-presented case for an appeal, potentially retreating below $2.

Meanwhile, an eventual closed meeting and internal vote to withdraw would likely support an XRP move to new record highs. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

Programmatic Sales of XRP Ruling Sets Precedent

The SEC’s appeal centers on the pivotal Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. The ruling sets a precedent for the US digital asset space, diluting the agency’s regulatory authority over crypto exchanges and trading.

If the SEC successfully overturns the ruling, XRP would fall under the agency’s regulatory oversight. This may lead to exchanges de-listing XRP to avoid violating US securities laws. It would also strengthen the agency’s cases against crypto exchanges, including Coinbase (COIN) and Binance. Additionally, the SEC might reject the pending XRP-spot ETF applications, creating further headwinds.

Conversely, withdrawing the appeal would cement the Programmatic Sales of XRP ruling as a legal precedent, affirming XRP’s non-security status in secondary sales and likely boosting XRP demand. Approving XRP-spot ETF applications would also be a significant XRP tailwind.

Pro-crypto lawyer and Chief Legal Officer of crypto venture capital firm Variant Jake Chervinsky underscored market sentiment, stating,

“It’s the first day of the first year in history when crypto will have the support of the US federal government. The market may overestimate what can be done in a day. DC moves slowly, and real change takes time and hard work. But all the stars are aligned for crypto in 2025.”

XRP Price Trends

On Wednesday, January 1, XRP surged by 11.89%, following Tuesday’s 1.26% gain to close at $2.3297. Significantly, XRP outperformed the broader market, which advanced by 1.92% to a total market cap of $3.250 trillion.

Speculation about the SEC withdrawing its appeal may support a return to $3. However, indications the SEC will pursue the appeal could test buyer demand, potentially dragging XRP below $2.

Unlock Exclusive XRP Price Insights: Discover what the SEC’s next move could mean for XRP’s future. Don’t miss our expert analysis here – read now!

Bitcoin and a Strategic Reserve

Meanwhile, bitcoin (BTC) also started 2025 on a positive note. Speculation about other major economies potentially following Trump’s plans for a Strategic Bitcoin Reserve (SBR) drove BTC demand.

Metaplanet CEO Simon Gerovich attended MicroStrategy (MSTR) founder and Chairman Michael Saylor’s New Year’s Eve event. He stated that the BTC community helped elect Trump, supporting expectations Trump will deliver on campaign pledges. He also said that the rest of the world would follow if the US made BTC a strategic reserve asset.

Gerovich named Japan a potential country to follow the US’s lead vis-à-vis approving a Strategic Bitcoin Reserve. Major economies acquiring BTC would significantly tilt the supply-demand balance in BTC’s favor. An SBR would also convert the US government and potentially other governments into BTC Hodlers, mitigating oversupply risk.

Metaplanet (3350) stands to gain significantly if BTC supply wanes. Listed on the Tokyo Stock Exchange, Metaplanet is Japan’s version of MicroStrategy, accumulating BTC using excess cash flow, debt, and equity financing.

Trump’s inauguration speech could be crucial for near-term price trends. Further assurances of including BTC as a strategic reserve asset could drive BTC to new highs.

Bitcoin Price Outlook

On Wednesday, January 1, BTC advanced by 1.06%, following Tuesday’s 0.82% gain to close at $94,373.

Near-term BTC price trends will hinge on US-BTC-spot ETF market flows and US economic data. Upbeat labor market data could reduce expectations of a Q1 2025 Fed rate cut, impacting demand for riskier assets, including BTC-spot ETFs and BTC. A sharp increase in net outflows may drag BTC toward $90,000. Conversely, softer labor market conditions could drive BTC toward $100,000.

As Trump’s inauguration day approaches, SBR-related chatter will also need consideration.

Market Outlook for XRP and BTC

The year 2024 ends with XRP and BTC at a critical juncture. Regulatory decisions, including the SEC’s Ripple appeal and ETF market trends, are set to shape investor sentiment. Broader macroeconomic factors, such as Federal Reserve policies and global regulatory shifts, will also play a decisive role in the crypto market’s trajectory.

Stay updated here with our expert insights for a deeper understanding of these pivotal developments.