XRP News Today: Deaton Criticizes SEC as XRP Holds Below $0.60

XRP Falls Short of $0.60 as Appeal Deadline Looms

On Monday, September 23, XRP fell by 0.49%, following a 1.62% loss in the previous session, closing at $0.5853. Notably, XRP underperformed the broader market, which advanced by 0.51%, bringing the total market cap to $2.177 trillion.

US Senate Candidate John E. Deaton on the Ripple Case

On Sunday, September 22, John E. Deaton discussed the SEC vs. Ripple case during an emergency interview on Good Morning Crypto. Deaton stated,

“It is a massive waste of money and capital and energy. […] When the lawsuit was listed, XRP lost $15 billion immediately. People were liquidated. But Ripple spent over $100 million in defense. I spent all my time because the SEC did something that it had never done in its 75 years of securities litigation, it claimed that the underlying asset, XRP, itself was a security and then I challenged it and sued the SEC and I simply said, just take away that language and I’ll go away and my 75,000 token holders will go away and they refused.”

Deaton added,

“And they actually attacked me and did all this other personal stuff against me and then you fast forward four years later and say, oh sorry, we’re just kidding. We’re sorry, we got it wrong. No, it was intentional misconduct by these SEC lawyers. People should be fired, they should lose their jobs […] because it was blatant.”

Deaton concluded,

“Let’s remember, a lifelong democrat judge, Analisa Torres, appointed by Barak Obama, agreed with me and my 75,000 XRP token holders, said XRP itself is not a security. And, when we purchased it on Coinbase, or Uphold, or Kraken, or wherever, it was not a security. […] We deserve compensation for that kind of misconduct and, I’m waiting to see what that IG Report finds because that could be the beginning of more litigation, except litigation on behalf of token holders.”

A Good Morning Crypto poll following the interview showed that 96.7% of pollsters agreed with Deaton’s analysis of the Ripple case.

Ongoing Investigation into SEC Conflicts of Interest

Deaton referred to the ongoing Office of Inspector General investigation (OIG) into crypto-related conflict of interest within the SEC.

In February, US government watchdog and whistleblower Empower Oversight announced that the OIG was nearing the end of an investigation into reported conflicts of interest within the SEC. Empower Oversight reported conflicts of interest to the OIG in 2022. Notably, the investigation involves former SEC Director William Hinman, a central figure in the Ripple case.

In 2018, Hinman famously declared that bitcoin (BTC) and ethereum (ETH) were not securities.

Empower Oversight sued the SEC in 2021, alleging that former SEC officials were biased toward Ripple Labs and XRP. Empower Oversight claimed that Hinman received millions of dollars from his former employer, the law firm Simpson Thacher despite working at the SEC. Simpson Thacher forms part of a group promoting Enterprise Ethereum.

Notably, court documents from the SEC vs. Ripple case revealed that Hinman continued to meet with lawyers from Simpson Thacher despite warnings from the SEC Ethics Division. The SEC attempted to shield these internal documents under attorney-client privilege.

The timing of the OIG investigation and its findings could materially affect SEC plans to appeal rulings from the Ripple case. However, with the appeal window closing on October 7, the SEC may have to decide whether to appeal without the final findings from the OIG investigation.

SEC Appeal Plans and XRP Price Trends

Price trends will likely depend on whether the SEC appeals rulings from the Ripple case. If the SEC appeals the Programmatic Sales of XRP ruling, XRP could drop toward $0.40. Conversely, if the SEC does not file an appeal, XRP could target $1.00, mirroring the market’s response to the Programmatic Sales of XRP ruling.

Investors should closely monitor appeal-related news, which could significantly impact XRP price trends. Keep track of SEC actions, which could be pivotal in dictating XRP’s price movements.

XRP Price Action

Daily Chart

XRP hovers above the 50-day and 200-day EMAs, sending bullish price signals.

A breakout from $0.60 could signal a move toward the September 21 high of $0.6128. Furthermore, a return to $0.6128 may bring the post-final judgment high of $0.6434 into play.

SEC activity and SEC vs. crypto case-related news require consideration.

Conversely, a break below the $0.5739 support level could give the bears a run at the 50-day and 200-day EMAs. A fall through the EMAs would signal a bullish trend reversal and suggest a possible drop toward the $0.50 level.

With a 14-day RSI reading of 54.12, XRP may return to the $0.65 level before entering overbought territory.