XRP News Today: Market Buzzes as Ripple Awaits Court Rulings, Biden’s Veto Stirs Debate

The Saturday Overview

On Saturday (June 1), XRP advanced by 0.33%. Reversing a 0.35% loss from Friday (May 31), XRP ended the session at $0.5188. Significantly, XRP ended a four-day losing streak.

Crypto Market Reacts to US President Joe Biden Vetoing the SAB 121 Resolution

Late into the Friday session, news broke of US President Joe Biden vetoing the SAB 121 resolution,

The veto means that US firms, including US banks, must include client-held crypto on their balance sheets, which affects US bank aspirations to become crypto custodians. Banks record crypto under custody on the liability side of their balance sheets. Banks must hold equivalent assets to meet regulatory requirements.

Ripple Chief Legal Officer Stuart Alderoty reacted to the news on X (formerly Twitter), posting,

“I’m no political savant, but alienating the 20% of voting Americans that own crypto 5 months before the election seems like a losing move.”

The decision to veto the bill highlighted the depth of the divide between the aisle. Nevertheless, crypto could become a hot topic of debate on Capitol Hill and amongst US voters as the US trails other economies with crypto regulatory frameworks already in place.

For the crypto community, the US Presidential Election Race could soften the Biden Administration’s stance on the crypto market. However, US Republican Party front-runner Donald Trump could swoop up the crypto vote if the Democrats remain focused on leaving the US crypto market unregulated.

Significantly, it may also mean that a Republican Party victory could be vital to end the era of regulation through enforcement. A Trump victory could also give the Lummis and Gillibrand Responsible Financial Innovation Act safe passage through Congress.

Senator Cynthia Lummis issued a statement and had this to say about the Biden veto,

“I will not stand idly by as this admin attempts to skirt the law, and I will continue to fight to promote financial innovation and key protections for crypto assets this admin seems hellbent on stifling.”

SEC vs. Crypto: Awaiting Court Rulings and an Appeal

There were no SEC vs. Ripple case-related updates to influence buyer demand for XRP. Nevertheless, pending court rulings could leave XRP in a cautious mood.

Investors await a court decision on the Ripple Motion to Seal. While publicly available agreements and financial statements could draw scrutiny, the penalty for breaching US securities laws will impact XRP more.

Ripple may have deep pockets to pay the financial penalty. However, a court decision to prohibit XRP sales to institutional investors could affect buyer appetite for XRP.

Investors should also consider SEC plans to appeal against the Programmatic Sales of XRP ruling. If the US appellate courts overturn the Programmatic Sales of XRP ruling, XRP would fall under the purview of the SEC. Moreover, investors could shy away from XRP in favor of altcoins. The outcome of the SEC v Coinbase (COIN) case will likely have more implications for the US digital asset space.

The crypto market awaits a court decision on the Coinbase Motion for Interlocutory Appeal. In April, Coinbase filed the Motion for Interlocutory Appeal in response to Judge Failla denying, in large part, the Coinbase Motion to Dismiss (MTD). In the Motion to Dismiss, Coinbase argued the SEC lacked the statutory authority to regulate US crypto exchanges.

Coinbase expects the SEC to appeal against a ruling favoring the Coinbase MTD.

However, a Republican Party win could end SEC plans to appeal the Programmatic Sales of XRP ruling and the war against crypto in the US courts. A Republican Party win may also open the door to an XRP-spot ETF market.

XRP Price Action

Daily Chart

XRP remained below the 50-day and 200-day EMAs, sending bearish price signals.

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

SEC vs. crypto case-related chatter and SEC activity need consideration.

Conversely, an XRP fall through the trend lines could signal a drop toward the $0.48 handle.

The 14-day RSI reading, 46.88, indicates an XRP drop to the $0.48 handle before entering oversold territory.