XRP News Today: Fifth Circuit Ruling Challenges SEC’s Reach in Crypto Market

The Thursday Overview

On Thursday (June 6), XRP declined by 0.72%. After a 0.04% loss on Wednesday (June 5), XRP ended the session at $0.5217.

SEC vs. Ripple: Investors Await Motion To Seal Ruling

There were no SEC vs. Ripple case-related updates to influence buyer demand for XRP on Thursday. Investors await the court ruling on Ripple’s Motion to Seal. Ripple filed the Motion to Seal, arguing to seal nonpublic information, including financial statements.

While the markets may consider the Motion to Seal a minor ruling, disclosing existing business terms with clients and its financial statements could affect future business and demand for XRP.

The SEC provided arguments to the court, contesting the Motion to Seal, arguing that submissions influencing a court ruling on the penalty for breaching US securities laws should be a matter of public record.

However, a recent court ruling may influence the decision on the Motion to Seal.

SEC Sees Another Court Ruling Go Against Them

Ripple Chief Legal Officer Stuart Alderoty shared a 5th Circuit private funds ruling, saying,

“I am once again asking how many tax dollars have been wasted through failed efforts by Gensler’s SEC to expand its jurisdiction beyond what the law allows?”

On Wednesday (June 5), the Fifth Circuit vacated SEC regulations requiring private fund advisors to provide full disclosures to investors. The ruling could be significant as it may impact the SEC’s ability to target crypto firms regarding disclosure.

The court ruling followed an SEC Chair Gary Gensler interview with CNBC. Chair Gensler had this to say about disclosure,

“We the SEC, tomorrow, are turning 90. Happy Birthday SEC, 90. And what President Roosevelt did is he created this Commission to oversee that you the investors get the disclosure. And in the crypto markets, they are not giving you that disclosure.”

Nevertheless, the Fifth Circuit ruling will unlikely influence the SEC vs. Ripple case. Ripple anticipates a court ruling in the coming months. In March, the SEC presented its case for an almost $2 billion penalty and an injunction prohibiting XRP sales to institutional investors.

In April, Ripple pressed for a $10 million penalty, arguing that there were no allegations of fraud or recklessness. Significantly, Ripple contested the SEC accusation that it continued to breach US securities laws after the 2020 complaint.

The SEC vs. Ripple ruling may hinge on how the court considers post-complaint XRP sales. If the court deduces post-complaint sales breached US securities laws, Ripple will likely face a punitive disgorgement and, possibly, an injunction.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP move above the 50-day EMA could give the bulls a run at the 200-day EMA. A break above the 200-day EMA would support a move to the $0.5739 resistance level.

SEC vs. crypto case-related news, the US Jobs Report, and SEC activity need consideration. Weaker-than-expected US labor market data could drive buyer demand for riskier assets.

Conversely, an XRP break below the trend lines could give the bears a run at the $0.48 handle.

The 14-day RSI reading, 48.31, suggests an XRP fall to the $0.48 handle before entering oversold territory.