XRP News Today: Empower Oversight Unveils New Details in SEC Conflict Probe

The Sunday Overview

On Sunday, XRP advanced by 2.41%. Following a 0.92% gain on Saturday, XRP closed the session at $0.6325.

SEC vs. Ripple Case Takes Center Stage

The investor focus will return to the ongoing SEC v Ripple case this week. The SEC will release a redacted version of the remedy-related opening brief on Tuesday, March 26. Investors expect the SEC to argue for a punitive disgorgement for selling unregistered securities to institutional investors.

In July 2023, Judge Torres ruled that Ripple breached Section 5 of the 1933 Securities Act for selling unregistered XRP to institutional investors.

The SEC will release the redacted opening brief amidst heightened scrutiny. Significantly, the Office of Inspector General (OIG) is close to concluding an investigation into alleged crypto conflicts of interest within the SEC.

Evidence of financial conflicts of interest could impact SEC plans to appeal a second ruling from July 2023. Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The investigation relates to former SEC director William Hinman.

Hinman allegedly received millions of dollars from his previous employer, Simpson Thacher, while guiding crypto regs at the SEC. Hinman returned to Simpson Thacher after leaving the SEC. In a highly publicized 2018 speech, Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. Simpson Thacher is in a group that promotes Enterprise Ethereum.

On Tuesday, Empower Oversight will further scrutinize the SEC vs. Ripple case. Founder Jason Foster and President Tristan Leavitt will discuss the IG Report and SEC lawsuits in a livecast on CryptoLaw.

Empower Oversight vs. the SEC

On March 18, Empower Oversight sued the SEC for more crypto conflict-related documents. Empower Oversight announced the lawsuit, saying,

“By slow walking their response to our FOIA request, the SEC is stonewalling Empower’s oversight into SEC officials with conflicts of interest on cryptocurrency issues. The public has a right to see all documents that relate to how these public officials violated ethics guidance and how the agency failed to hold them accountable.”

On March 14, Empower Oversight requested records relating to possible ethical violations. The March 14 request expanded the investigation to include documents relating to former SEC Chair Jay Clayton.

Former Chair Clayton reportedly moved to One River Asset Management after leaving the SEC. One River Asset Management is a hedge fund focused on BTC and ETH. The letter to the FOIA highlighted that Clayton stated bitcoin is not a security and affirmed Hinman’s speech about ETH,

Links between Clayton and crypto-related firms go back to 2022. Empower Oversight noted that Clayton became an advisor to Electric Capital in 2022. Electric Capital is a Consensys investor. Consensys is a developer of Ether.

The SEC filed charges against Ripple Labs on Chair Clayton’s last day at the SEC.

XRP Price Action

Daily Chart

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

An XRP move through the $0.6609 resistance level could give the bulls a run at the $0.70 handle. A breakout from the $0.70 handle could signal a move to the $0.7467 resistance level.

SEC-related news and SEC vs. Ripple case-related chatter need consideration.

Conversely, a drop below the 50-day EMA could give the bears a run at the 200-day EMA and the $0.5740 support level. Buying pressure could intensify at the $0.5740 support level. The 200-day EMA is confluent with the support level.

The 14-day RSI reading, 52.23, indicates an XRP move to the $0.70 handle before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day and 200-day EMAs. The EMAs affirmed the bullish price signals.

An XRP return to the $0.65 handle would support a move to the $0.6609 resistance level.

However, a drop below the 50-day EMA could signal a drop below the $0.60 handle. A fall through the $0.60 handle could give the bears a run at the $0.5740 support level.

The 4-hourly RSI, with a reading of 56.14, suggests an XRP break above the $0.6609 resistance level before entering overbought territory.