XRP News Today: Legal Shift at SEC Sparks Optimism for XRP Traders; BTC at $97K

SEC vs. Ripple: Chief Litigation Council Reassigned

On Wednesday, February 5, SEC activity was under the spotlight as investors awaited updates on the Ripple case Fox Business journalist Eleanor Terrett reported a potentially significant development:

“A report from WSJ says the SEC has reassigned its Chief Litigation Council Jorge Tenreiro, who played a key role in the Ripple and Coinbase lawsuits, to the agency’s IT department.”

According to the WSJ report, the SEC transferred Jorge Tenreiro, considered one of the agency’s top crypto litigators, to an office responsible for maintaining computer systems.

The reassignment could be part of the agency’s shift toward digital assets following US President Trump’s re-election victory and Gary Gensler’s departure. Tenreiro was part of the SEC’s legal team in both the Ripple and Coinbase (COIN) cases.

News of the reassignment fueled speculation that the SEC might withdraw its appeal, challenging the Programmatic Sales of XRP ruling. The SEC filed its appeal-related opening brief on January 15, just days before Gary Gensler stepped down as Chair. Since Gensler’s departure, President Trump has appointed Commissioner Mark Uyeda as Acting Chair, boosting hopes of an end to the Ripple case.

In November, Acting Chair Uyeda criticized the SEC’s enforcement approach toward crypto firms, stating:

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

XRP Price Trends: SEC Appeal Uncertainty Weighs on Demand

On Wednesday, February 5, XRP slid by 5.8%, following Tuesday’s 6.44%, closing at $2.3817. Significantly, XRP underperformed the broader market, which fell 1.25% to a total crypto market cap of $3.12 trillion. XRP’s pullback reflected uncertainty about the SEC’s appeal plans. The SEC’s next move will likely influence XRP’s trajectory:

• If the SEC withdraws its appeal, XRP could surge past its all-time high of $3.5505.
• If the appeal proceeds, XRP may drop below $1.50.

Expert Analysis: How will the SEC’s next move shape XRP’s future? Read more here.

Bitcoin Under Pressure on Demand Outlook Concerns

While investors speculate about the SEC withdrawing its appeal, bitcoin (BTC) continued to trend lower. Optimism about a demand boost waned as investors considered US crypto Czar David Sacks’ recent press conference.

In his first press conference since being appointed the AI and Crypto Czar, Sacks said that the Presidential Working Group on Digital Assets will explore the possibility of a Bitcoin reserve. However, he downplayed expectations of a swift move to make BTC a strategic reserve asset.

Speculation that BTC could become a US Strategic Bitcoin Reserve (SBR) drove prices to a record high of $109,312 on January 20. In January, Anthony Scaramucci suggested that the US government could make a substantial BTC acquisition, stating:

“They’ll probably buy another four or five hundred thousand BTC. 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.”

However, Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset. In late 2024, Senator Cynthia Lummis set the wheels in motion, introducing the Bitcoin Act. The bill proposes that the US government buy one million BTC over five years with a 20-year mandatory holding period.

US BTC-spot ETF Market Sees Inflows Slow on SBR Silence

As BTC trended lower, inflows into US BTC-spot ETFs also slowed, reflecting market caution. According to Farside Investors, February 5 ETF inflows included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $10.6 million.
• WisdomTree Bitcoin Fund (BTCW) reported net inflows of $11.4 million.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $22.0 million. While modest inflows could cushion any early downside on February 6, Wednesday’s subdued numbers may also keep BTC below the $100k level.

Bitcoin Price Outlook

On Wednesday, February 5, BTC declined by 1.34% after Tuesday’s 3.54% loss, closing at $96,668. Significantly, BTC fell short of the $100K level for the first time since January 17.

BTC’s near-term price trend hinges on several factors, including US-China tensions, SBR-related news, the Fed rate path, and US BTC-spot ETF flows.

Possible Scenarios:

• Bearish case: Rising trade tensions, a hawkish Fed, and stalled SBR discussions could pull BTC below $90,000.
• Bullish case: De-escalating trade risks, a more dovish Fed, and increasing political support for an SBR could push BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments in Focus

Following the tariff-driven market sell-off, investors are now watching two key developments: the SEC’s appeal decision and the potential for a US Bitcoin reserve. Both could significantly impact institutional adoption and overall market sentiment.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Explore the full analysis here.