XRP News Today: OIG Probe May Influence Ripple’s SEC Fight; BTC at Sub-$95k

Trump Advances Pro-Crypto Agenda with Key Appointment

On Sunday, Fox Business journalist Eleanor Terrett announced President-elect Trump’s latest digital asset appointment, stating,

“Donald Trump has announced Bo Hines, a former Republican congressional candidate, will be the Executive Director of the Presidential Council of Advisors for Digital assets aka ‘the Crypto Council’ that will be made up of industry leaders and chaired by David Sacks.”

Hines and Sacks will reportedly foster innovation and growth in the digital asset space. The pair will also work to ensure the digital asset sector has adequate resources to succeed.

While Bo Hines’ crypto credentials are unclear, he has been a vocal advocate. In January, Hines criticized the Biden administration’s anti-crypto stance, saying,

“Cryptocurrency is the epitome of individual empowerment in finance. We don’t need the government stepping in and slapping burdensome regulations on financial innovation. This new sector needs the freedom to grow organically. Decentralized finance is the way of the future if regulators don’t crush it!”

Trump’s latest appointment further underscores the incoming government’s pro-crypto agenda and ambition to make the US a leader in the digital asset space.

SEC Conflicts of Interest Under OIG Scrutiny

Meanwhile, Terrett filed a Freedom of Information Act (FOIA) request regarding the Office of Inspector General’s (OIG) investigation into potential crypto-related conflicts of interest within the SEC. Terrett reported that the OIG completed the investigation and issued the findings to management.

The investigation centers around former SEC Director of the Division of Corporate Finance, William (Bill) Hinman, a central figure in the SEC v Ripple case.

In 2018, Bill Hinman declared that Bitcoin (BTC) and Ethereum (ETH) were not securities. The contentious issue with the speech related to Hinman’s connection with the legal firm Simpson Thacher, which is part of a group that promotes Enterprise Ethereum.

After leaving the SEC, Hinman returned to his former employer, Simpson Thacher. In a 2021 lawsuit against the SEC, Empower Oversight alleged Hinman received millions of dollars from Simpson Thacher while working at the agency.

During the Ripple case, the SEC made at least six attempts to shield Hinman’s speech-related documents under attorney-client privilege. The court denied the SEC’s requests. The documents revealed that Hinman continued to meet with his former employer, Simpson Thacher, despite SEC ethics division warnings.

OIG Investigation Findings May Extend to Former SEC Chair Jay Clayton

Empower Oversight intensified its scrutiny of the SEC in March. The whistleblower sent a letter to an FOIA Officer, requesting records relating to potential ethics violations. The letter underscored concerns about former SEC Chair Jay Cayton, stating,

“Additionally, there are potential concerns regarding former SEC Chair Jay Clayton. During his tenure as Chairman, Mr. Clayton publicly stated that Bitcoin is not a security and affirmed Mr. Hinman’s statement that Ether is not a security.”

Former SEC Chair Clayton agreed to the Ripple lawsuit on his final days at the SEC. After leaving the SEC, Clayton moved to One River Asset Management, a BTC and ETH-focused hedge fund.

The OIG report could reveal the SEC’s alleged attempts to promote ETH at the expense of Ripple and XRP.

It’s plausible that the SEC may face pressure to withdraw its appeal if the OIG investigation uncovers evidence of conflicts of interest, impacting XRP investors. Prior to the lawsuit, XRP was the second-largest crypto by market cap.

XRP Price Trends: OIG and Appeal in Focus

On Sunday, December 22, XRP declined by 1.58%, following Saturday’s 1.85% loss to close at $2.2011. The crypto market remained under pressure following Wednesday’s Fed rate cut and more hawkish economic projections.

However, Ripple’s ongoing legal battles with the SEC will remain a key driver for XRP.

If the agency withdraws its appeal, XRP could target January 2018’s all-time high of $3.5505. However, XRP could face initial selling pressure if the SEC files its opening brief by January 15, potentially sending the token below $1.50.

Explore exclusive XRP price predictions here.

BTC-Spot-ETF Outflows and SBR Uncertainty

On Sunday, bitcoin (BTC) also faced increasing selling pressure, dropping below $95k.

The Fed’s more hawkish economic projections impacted demand for BTC-spot ETFs, sending BTC into negative territory. According to Farside Investors, the US BTC-spot ETF market reported net inflows of $457 million in the week ending December 20. However, outflows on Thursday and Friday soured the mood as investors considered the Fed’s rate path outlook.

With BTC price trends hinged in spot-ETF flows, progress toward a US strategic Bitcoin reserve (SBR) looks essential. Trump’s latest appointment to ‘the Crypto Council’ supports the incoming administration’s aspirations for an SBR.

However, Congress, the Treasury Department, and the US Federal Reserve must also approve BTC as a strategic reserve asset. Uncertainty about Congress and the Fed’s support has likely dampened BTC demand. During the FOMC Press Conference, Fed Chair Powell downplayed the central bank’s BTC support.

However, MicroStrategy (MSTR) founder and chairman Michael Saylor continues to advocate for an SBR. On Sunday, Saylor stated,

“A strategic digital asset policy can strengthen the US dollar, neutralize the national debt, and position America as the global leader in the 21st-century digital economy—empowering millions of businesses, driving growth, and creating trillions in value.”

MicroStrategy, a BTC HODLER, has plenty to gain from BTC becoming a US strategic reserve asset. This would make the US government a BTC accumulator and HODLER, reducing supply, and potentially driving prices higher. Hopes of an SBR sent BTC to a December 17 record high of $108,231.

Bitcoin Price Outlook

On Sunday, December 22, BTC declined by 2.26%, following Saturday’s 0.63% loss to close at $95,304.

Near-term BTC price trends will hinge on US consumer confidence and jobless claims data, due this week. Upbeat figures could bolster bets on fewer Fed rate cuts, potentially pulling BTC toward the $90,742 support level. Conversely, weaker numbers could rekindle bets on a January Fed rate cut, driving BTC toward $100k.

However, SBR-related news and BTC-spot ETF flow data also need consideration.

Market Outlook for XRP and BTC

Both XRP and BTC face pivotal moments. XRP’s trajectory hinges on the SEC’s next steps, while BTC remains highly sensitive to ETF flows and macroeconomic indicators. Ripple’s legal battles and US policy shifts on digital assets will continue to redraw the broader crypto landscape in 2024. Stay updated with our latest market analysis and expert insights here.