XRP News Today: Market Outlook Brightens with Recent SEC vs. Crypto Court Decisions

Following the SEC vs. Binance court ruling, will a court ruling from the SEC v Coinbase (COIN) case give XRP a boost?

XRP Amicus Curiae Attorney Deaton Take on Binance Ruling

On Sunday, June 30, XRP advanced by 0.70%. Following a 0.28% on Saturday, June 29, XRP ended June down 8.04% to $0.4755.

As the SEC v Ripple case awaits updates, the outcome of SEC vs. Binance could set a precedent impacting the broader crypto market, including XRP.

Judge Amy Berman Jackson rejected the SEC’s assertion that secondary market transactions of Binance’s BNB token meet the criteria for securities under the Howey test.

CryptoLaw US founder and candidate for the Massachusetts Senate seat John E. Deaton reacted to the ruling, stating,

“ I take HUGE pride in the fact that me and my SEVENTY-FIVE THOUSAND XRPHolders played a significant role in getting Judge Torres to rule as she did. Judge Torres not only cited my Amicus Brief (she cited other briefs as well) but also cited the thousands of affidavits we submitted by #RPHolders when she ruled sales of #XRP on exchanges did not violate securities laws. She ruled, as we requested: ‘XRP itself is not a security’.”

John E. Deaton filed the Amicus Brief representing 75,000 XRP Holders that contributed to the Programmatic Sales of XRP ruling.

Significantly, the SEC vs. Binance court decision could also influence rulings from the SEC vs. Coinbase case.

Potential Outcomes for SEC vs. Coinbase

Coinbase filed a Motion for Interlocutory Appeal in April, asking the court for permission to appeal against the Motion to Dismiss (MTD) decision.

For context, Coinbase filed the Motion to Dismiss in August, arguing that the SEC lacked the statutory authority to regulate crypto exchanges. Judge Katherine Failla denied, for the most part, the Motion to Dismiss, surmising,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

If Judge Failla grants the Coinbase Motion for Interlocutory Appeal, Coinbase could cite the SEC vs. Binance in its appeal. Successfully overturning the Motion to Dismiss ruling may end the era of regulation through enforcement and the debate on whether cryptos are securities or commodities.

Significantly, the court rulings rejecting that cryptos are securities give the Commodity Futures Trading Commission (CFTC) greater authority over the US digital asset space.

Will the Crypto Market Benefit from CFTC Oversight?

XRP and the broader crypto market could benefit from greater involvement of the CFTC for three reasons:

• Ending the debate on whether cryptos are securities could pave the way for XRP-spot ETFs and a broader crypto-spot ETF market.
• Support passage of the Lummis and Gillibrand Responsible Financial Innovation Act.
• Reduce the chances of the Digital Asset Anti-Money Laundering Act becoming law.

The Responsible Financial Innovation Act would give the CFTC more authority over the US digital asset space. Moreover, the bipartisan bill would support innovation while protecting US consumers.

In contrast, the Digital Asset Anti-Money Laundering Act proposes anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks for the US digital asset space. Senators Elizabeth Warren and Roger Marshall drafted the bill with the assistance of the American Bankers Association.

The bill aims to impose banking-style regulations onto the US digital asset space under the purview of the SEC.

In conclusion, court decisions denying cryptos are securities could empower the Commodity Futures Trading Commission (CFTC), fostering a more innovation-friendly environment. This shift might pave the way for XRP-spot ETFs and reduce legislative hurdles.

XRP Price Action

Daily Chart

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

An XRP move above the trend lines could give the bulls a run at the 50-day EMA. A break above the 50-day EMA would support a move toward the 200-day EMA and the $0.55 handle.

SEC vs. crypto case-related updates and an SEC response to the Binance ruling require investor attention.

Conversely, an XRP drop below the $0.4650 handle could give the bears a run at the $0.45 handle.

With a 14-day RSI reading of 41.88, XRP may drop to the $0.45 level before entering oversold territory.