XRP News Today: Chair Gensler Silent on Crypto Conflict Report; BTC at Sub-$95K

SEC Chair Gensler and the OIG Investigation: What’s at Stake?

In December 2024, the Office of Inspector General (OIG) concluded a lengthy investigation into alleged crypto conflicts of interest within the SEC. Although the findings were submitted to SEC leadership, the report remains undisclosed. This lack of transparency raises questions about SEC Chair Gary Gensler’s silence on the matter.

US Government whistleblower Empower Oversight reported the potential conflicts of interest to the OIG in 2022, midway through the SEC vs. Ripple case. It alleged that former SEC officials, including William Hinman, were biased against Ripple and XRP. Empower Oversight called for an investigation after filing a lawsuit against the SEC in 2021.

As background, William Hinman famously declared bitcoin (BTC) and ethereum (ETH) as not securities in 2018. Empower Oversight claims that Hinman received millions of dollars from law firm Simpson Thacher, his former employer. Simpson Thacher is part of a group promoting Enterprise Ethereum. After leaving the agency, Hinman returned to Simpson Thacher.

The reasons for SEC Chair Gensler’s silence on the OIG’s findings remain unknown. During the discovery stage of the Ripple case, the SEC made at least six attempts to shield Hinman’s 2018 Hinman speech-related documents under attorney-client privilege.

However, the court rejected the SEC’s attempts, and the documents showed that Hinman continued meeting with his former employer despite warnings from the SEC Ethics Division.

The OIG’s findings could heavily influence the SEC’s appeal decision in the Ripple case, with the opening brief due by January 15. Any evidence of misconduct could intensify scrutiny, particularly as Gensler prepares to leave the agency.

XRP Price Trends: Ripple’s Legal Battle Dictate Market Sentiment

On Friday, January 10, XRP advanced by 3.01%, partially reversing Thursday’s 4.25% slide to close at $2.3410. Significantly, XRP outperformed the broader crypto market, which gained 2.18%, taking the total crypto market cap to $3.23 trillion.

XRP price trends remain hinged on the Ripple case. XRP could drop below $2 if the SEC files its opening brief. The token may fall to $0.50 if Ripple loses at the Second Circuit. Conversely, XRP could break above its 2018 record high of $3.5505 if the agency withdraws its appeal.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin Advances as Spot ETF Market Celebrates First Anniversary

Meanwhile, bitcoin (BTC) marked a significant milestone as the US BTC-spot ETF market celebrated its first anniversary. It was an impressive first year, registering a whopping $36 billion in total net inflows.

Bloomberg Intelligence ETF Analyst James Seyffart commented:

“Just how big was the first year for Bitcoin ETFs? Massive.”

Seyffart also shared a list of the largest ETFs one year after launching, saying four BTC-spot ETFs would make the top 20, even if adjusted for inflation. Significantly, BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) topped the table, with Fidelity’s Wise Origin Bitcoin Fund (FBTC) ranking fourth.

US Strategic Bitcoin Reserve Developments Drive BTC Demand

While the US BTC-spot ETF market celebrated its first year, US Strategic Bitcoin Reserve (SBR) developments drew interest.

On January 10, several US states introduced Strategic Reserve bills, including New Hampshire, Texas, and Pennsylvania.

The SBR-related activity suggests a national SBR is plausible, boosting BTC demand. BTC rebounded from a Friday low of $92,249, with the US BTC-spot ETF market recording net inflows for the day. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $16.6 million on January 8.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $13.5 million.

Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $34.2 million.

Progress toward an SBR could drive demand for US BTC-spot ETFs and BTC to new highs. Amicus Curiae attorney John E. Deaton recently commented on the potential impact of an SBR on BTC price trends, saying,

“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”

Bitcoin Price Outlook

On Friday, January 10, BTC gained 2.27%, reversing Thursday’s 2.53% loss to close at $94,818. Significantly, BTC recovered from early losses despite a hotter-than-expected US Jobs Report signaling a more hawkish Fed rate path. Friday’s price action suggests that progress toward a US SBR would have more influence than Fed monetary policy.

BTC’s near-term trends depend on BTC-spot ETF market flow trends and Strategic Bitcoin Reserve (SBR) developments. Progress toward a US SBR and BTC-spot ETF inflows would signal a supply-demand balance firmly tilted in BTC’s favor. This scenario would support a BTC climb to new highs. However, a lack of progress toward an SBR could drag BTC below the $90,742 support level.

Market Outlook: XRP and BTC at a Crossroads

XRP and BTC remain under the influence of regulatory developments and macroeconomic trends. XRP’s trajectory depends on the SEC’s appeal outcome, while BTC’s performance hinges on ETF flows and progress toward a US SBR. Broader regulatory and monetary policy changes will continue to shape investor sentiment.

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