XRP News Today: Deaton vs. Warren Showdown – XRP Price Falters on Regulatory Jitters

XRP Drops Below $0.55

On Sunday, September 1, XRP slid by 3.32% after a 0.18% loss from the previous session, closing at $0.5478. XRP underperformed compared to the broader crypto market trend, which declined by 2.96% to a total market cap of $1.968 trillion.

Ripple Case Uncertainty and Escrow Release Pressure XRP

Uncertainty about the SEC’s plans to appeal rulings from the Ripple case remained an XRP headwind. Ripple and the SEC have a 60-day window to appeal following the August 7 final judgment.

XRP’s drop below $0.55 coincided with Ripple’s scheduled release of 1 billion XRP from escrow. The monthly release comes at a tricky time for XRP, with uncertainties about the Ripple case affecting demand, increasing sensitivity to supply trends. However, US politics could influence the SEC’s decision to appeal rulings and XRP demand.

Massachusetts Primary: A Battle with Potential Crypto Implications

On September 3, John E. Deaton, CryptoLaw US founder, will face Senator Elizabeth Warren in the Massachusetts primary.

The outcome of the primary could significantly impact the crypto industry. A win for Deaton might signal the end of Senator Warren’s anti-crypto campaign, which has focused on imposing stringent, banking-like regulations on the industry.

In 2023, Senator Warren aimed to impose banking-style regulations on crypto firms by introducing the Digital Asset Anti-Money Laundering Act. The bill may fail to progress through Congress if Warren loses her seat. Notably, Senator Warren referred to reports about the use of crypto for illicit activity to drum up support for the bill.

In December 2023, Senator Warren stated,

“The Treasury Department is making clear that we need new laws to crack down on crypto’s use in enabling terrorist groups, rogue nations, drug lords, ransomware gangs, and fraudsters to launder billions in stolen funds, evade sanctions, fund illegal weapons programs, and profit from devastating cyberattacks.”

Senator Warren has close ties with SEC Chair Gary Gensler, who remains the spearhead behind the SEC’s reign of regulation through enforcement.

On Thursday, Deaton shared an image of Senator Warren, referencing an anti-crypto army, saying,

“We all know who the Captain of the Crusade against Crypto is, and it’s not Gary Gensler.”

In contrast to Senator Warren’s stance on crypto, Deaton represented 75,000 XRP holders in the Ripple case and was instrumental in the favorable Programmatic Sales of XRP ruling.

A victory for Deaton could materially alter the crypto regulatory landscape, possibly impacting Gary Gensler’s war against crypto.

XRP Price Trends and SEC Appeal Plans

Looking ahead, price trends will depend on whether the SEC decides to appeal rulings from the Ripple case. XRP could fall through $0.40 if the SEC appeals. Conversely, if the SEC does not appeal, XRP could return to $1.00, similar to the surge following the Programmatic Sales of XRP ruling.

The uncertainty surrounding the SEC’s plans remains an XRP headwind.

Investors should remain vigilant as appeal-related news will likely influence XRP price trends. Stay updated with our latest news and analysis to manage your exposure to XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

A breakout from the 200-day EMA could support a move toward the 50-day EMA. Furthermore, a break above the 50-day EMA could give the bulls a run at the $0.5739 resistance level.

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

Conversely, an XRP drop below $0.54 could signal a fall toward the $0.50 level. A break below $0.50 could bring the top trend line into play.

With a 14-day RSI reading of 41.65, XRP may drop to $0.50 before entering oversold territory.