XRP News Today: Deaton Weighs In – Is SEC’s Appeal a ‘Fool’s Errand’? BTC Hits $102k

SEC vs. Ripple Appeal Speculation Intensifies

On Monday, January 6, XRP was in the spotlight as speculation about the SEC’s appeal plan in the Ripple case intensified. The court deadline for the SEC to file its appeal-related opening brief is January 15.

The agency plans to appeal the Summary Judgment and the Final Judgment. In the Summary Judgment, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. This ruling enabled US crypto exchanges to relist XRP without falling under the SEC’s regulatory watch.

However, uncertainty looms over the SEC’s next steps. The filing deadline is a matter of days before SEC Chair Gensler steps down and Trump’s inauguration, both on January 20. This uncertainty has hampered XRP’s return to $3 and its 2018 all-time high of $3.5505.

Amicus Curiae Attorney John E. Deaton Discusses the SEC Appeal

Amicus Curiae attorney John E. Deaton detailed why an appeal lacks merit, stating,

“The Torres decision is a federal district court ruling and is NOT binding precedent.”

He also noted that Judge Torres only applied the third prong of the Howey Test, ruling the SEC failed to show XRP purchasers relied on Ripple.

Deaton explained:

“Judge Torres made her ruling very FACT SPECIFIC and thus, only applicable to the facts of the Ripple case. Therefore, the DECISION ITSELF has very limited persuasive use. Moreover, in her decision, denying an interlocutory appeal, Judge Torres made clear that her decision did not rule that all secondary market sales of digital assets could never constitute the sale of securities, she ruled that the evidence, or lack thereof, presented by the SEC, in the Ripple case, related to secondary sales of XRP, did not satisfy the Howey test.”

Deaton elaborated on the appeal process, stating that the case would return to Judge Torres if the SEC won at the Second Circuit. Judge Torres would then apply the other Howey factors and rule against the SEC for failing to prove a common enterprise regarding secondary market sales.

Deaton also considered the possibility of Ripple losing at the Second Circuit, saying that Ripple would petition the US Supreme Court to hear its case. The Amicus Curiae attorney believes the Supreme Court would take the case considering the legal significance and the increasing importance of digital assets. He thinks the SEC could lose big in such a scenario, concluding.

“Hence, my point: appealing the Ripple ruling is a fool’s errand and I think Paul Atkins will see it that way.”

XRP Price Trends

On Monday, January 6, XRP gained 0.92%, reversing Sunday’s 0.90% loss to close at $2.4207. Significantly, XRP trailed the broader crypto market, which advanced by 2.76%, taking the total market cap to $3.510 trillion. The ongoing threat of the SEC pursuing its appeal capped the gains.

XRP price trends now hinge on whether the SEC files its appeal-related opening brief. A court filing could push XRP below $2, with further declines to $0.50 if Ripple loses at the Second Circuit. Conversely, withdrawal could drive XRP past its 2018 record high of $3.5505.

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 Hits $102k as US BTC-Spot ETF Market Inflows Boost Sentiment

Meanwhile, bitcoin (BTC) enjoyed a breakout session on January 6, retaking the $102k handle. The US BTC-spot ETF market fueled BTC demand, with a likely second session of net inflows. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) posted net inflows of $370.
• ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $153 million.

Excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $770 million on January 6. Notably, seven issuers registered net inflows, underscoring improving market sentiment. US BTC-spot ETF market flows continue influencing the supply-demand balance, impacting BTC price trends.

Federal Reserve and a Strategic Bitcoin Reserve

Speculation about a Strategic Bitcoin Reserve (SBR) added fuel to BTC’s momentum. On January 6, news hit the crypto wires of the US Federal Reserve’s Michael Barr’s plans to resign as Vice Chair of Supervision in February.

Founder and CEO of Custodia Bank, Caitlin Long, shared the news, stating:

“The Fed’s debanker-in-chief is out! Michael Barr, the last remaining Biden/Warren appointee who architected Operation Choke Point 2.0 at a federal financial agency will resign as vice chair of supervision in February.”

Long also shared an image of the architects of Choke Point 2.0, which included SEC Chair Gensler, Senator Elizabeth Warren, and Senator Sherrod Brown.

Michael Barr’s resignation could increase the chances of BTC becoming a US strategic reserve asset. On January 2, Anthony Scaramucci highlighted the chances of an SBR, saying,

“Let me tell you why I think it will happen ok. Trump wants it to happen and he’s got the Senate Banking Committee. Tim Scott wants it to happen. He’s going to be the chair of the Senate Banking Committee. Bessent wants it to happen.”

Scaramucci also suggested that a Congress vote could mirror the SAB 121 vote, where the Democrats under 60 years-of-age joined a bipartisan vote against the bill.

Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset. If Trump, Congress, and the Treasury Department are on board, the Fed could be the deciding vote.

BTC’s supply-demand balance could shift significantly toward demand dominance if the US government approves an SBR. Deaton recently said that BTC could reach $1 million a lot faster than people think if it becomes a strategic reserve asset.

Bitcoin Price Outlook

On Monday, January 6, BTC rallied 3.98%, following Sunday’s 0.24% gain to close at $102,228. Significantly, BTC extended its winning streak to seven sessions.

BTC’s near-term trends will hinge on US SBR developments, BTC-spot ETF market flows, and US economic indicators. Upbeat US data could signal a more hawkish Fed rate path, potentially dragging BTC below $95k. Conversely, rising bets on a Q1 Fed rate cut could drive BTC to new highs.

However, progress toward a US SBR could be crucial for BTC to break new ground.

Market Outlook for XRP and BTC

Both XRP and BTC face critical junctures in 2025. Regulatory developments, including the SEC’s Ripple appeal and BTC-spot ETF trends, will play pivotal roles in dictating sentiment. Broader factors, such as Federal Reserve policy and global regulations, will also influence the crypto market’s trajectory.

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