XRP News Today: Judge Questions SEC’s Vague Rules Amidst Ripple Lawsuit

The Wednesday Overview

On Wednesday, XRP gained 3.34%. Partially reversing an 8.60% loss from Tuesday, XRP ended the session at $0.6121.

Demand for BTC and the broader crypto market rebounded on Wednesday. The BTC-spot ETF market saw net inflows on Tuesday (March 5), driving buyer demand for BTC and the broader market. Significantly, iShares Bitcoin Trust (IBIT) saw record net inflows on March 5, ensuring total net inflows for the BTC-spot ETF market.

However, Fed Chair Powell also contributed to the XRP gains.

Fed Chair Powell drove buyer demand for riskier assets during testimony on Capitol Hill. The Fed Chair discussed likely rate cuts later in the year while highlighting the Fed was data dependent vis-à-vis monetary policy. XRP recovered from an afternoon session low of $0.5893, rising to a second-half high of $0.6168.

Scrutiny of SEC activity in the courts also drew investor attention.

US Judge Highlights Vagueness of SEC Rules and Regulations

On Wednesday, Ripple Chief Legal Officer Stuart Alderoty shared a transcript from an ongoing case involving the SEC, saying,

“I don’t know much about this proxy access case argued in the 5th Circuit yesterday, but when a judge says the SEC’s rules are “so vague and loosey-goosey that nobody knows whether they’ll be at risk…,” she may be on to something. NCPPR v SEC.”

The comments follow a series of damaging court statements about the SEC. While the latest comments may not influence the outcome of the SEC v Ripple case, they may draw US lawmaker scrutiny.

In February, Senator Cynthia Lummis was among five US Senators who co-signed a letter to SEC Chair Gary Gensler, threatening the SEC with lawmaker scrutiny. The Senators co-signed the letter in response to the SEC filing a Motion to Dismiss charges against Debt Box.

The SEC filed the Motion to Dismiss after the court ordered “the SEC to show cause why it should not be sanctioned for making false and misleading representations to the court.”

Scrutiny of SEC activity has stretched beyond the courts. The Office of Inspector General (OIG) is nearing the end of an investigation into crypto conflicts of interest within the SEC.

If the OIG finds the SEC acted inappropriately, the SEC could end plans to appeal the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled programmatic sales of XRP did not satisfy the third prong of the Howey Test. The SEC has shown its intent to appeal against the ruling since filing a Motion for Interlocutory Appeal in August 2023.

An end to SEC plans to appeal the Programmatic Sales ruling would be a boon for XRP. Updates from the ongoing OIG investigation and SEC v crypto cases will influence XRP price trends.

XRP Price Action

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming bullish price signals.

A breakout from the $0.62 handle would give the bulls a run at the $0.6354 resistance level. An XRP move through the $0.6354 resistance level would bring the Tuesday high of $0.6689 into play.

The OIG Investigation, SEC v crypto case-related updates, and BTC-spot ETF market flows need consideration.

However, a drop below the $0.60 handle could signal a fall to the $0.5835 support level.

The 14-day RSI reading, 58.01, indicates an XRP return to the Tuesday high of $0.6692 before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP sat above the 50-day and 200-day EMAs, confirming the bullish price trends.

An XRP return to the $0.62 handle would support a move to the $0.6354 resistance level.

On the other hand, a drop below the 50-day EMA would give the bears a run at the $0.5835 support level.

The 4-hourly RSI, with a reading of 47.95, indicates an XRP fall through the $0.5835 support level before entering oversold territory.