XRP News Today: Pro-Crypto Congress Boosts Sentiment for Ripple; BTC Hits $98k

Ripple CEO Highlights Seismic Crypto Shift on Capitol Hill

On Friday, January 3, Ripple CEO Brad Garlinghouse emphasized a growing pro-crypto sentiment on Capitol Hill, saying,

“Today, here in the US, we welcomed the 119th Congress—better known as the most pro-crypto Congress in history. The journey is just beginning, but you can’t deny the energy & excitement already building across the industry. Let’s get to work.”

The pro-crypto Republicans hold a majority in the House and the Senate. Republicans have a 219-215 majority in the House, with a 53-47 majority in the Senate. Trump’s pro-crypto agenda and progress toward a crypto regulatory framework fostering innovation while protecting investors looks achievable.

While the Republicans hold a minor edge on Capitol Hill, last year’s SAB 121 vote underscored the bipartisan support for crypto. The SAB 121 vote suggests little US policymaker resistance to making the US a global leader in blockchain tech. On Thursday, January 2, Anthony Scaramucci referred to the SAB 121 vote, stating that all the Democrats under 60 years of age voted against the bill.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, especially banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. President Joe Biden vetoed the vote, preventing it from taking effect.

The Republicans, the Ripple Case, and the Appeal

The ongoing SEC v Ripple case continues to dominate market focus as the crucial January 15 deadline approaches. Markets expect the SEC to file its appeal-related opening brief by January 15, the extended deadline. The filing would come just days before SEC Chair Gary Gensler steps down, making the way for former Commissioner Paul Atkins.

Trump nominated Paul Atkins to support his pro-crypto agenda. Legal experts suggest Atkins reverse course on the agency’s crypto-enforcement efforts, including withdrawing the Ripple appeal.

Former SEC lawyer Marc Fagel believes the SEC could proceed with the appeal under Chair Gensler but withdraw it under the new leadership, saying,

“The appeal will continue for now, and that process takes about a year. But there is the possibility that a new administration decides to move to dismiss the appeal. That’s not something I recall happening before, but it’s possible and maybe likely.”

An SEC overhaul could support a withdrawal of the appeal. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal. Former Commissioner Caroline Crenshaw’s failed renomination vote and the departure of Commissioner Jaime Lizarraga (January 17)) and Chair Gensler (January 20) could swing a vote in Ripple’s favor.

An SEC decision to withdraw the appeal could bolster XRP’s market position. Conversely, an appeal would keep legal uncertainty looming over Ripple’s future. If the SEC continues its appeal against Ripple, it may affect sentiment toward Trump’s pro-crypto agenda.

XRP Price Trends

On Friday, January 3, XRP extended its winning streak to four sessions, advancing by 2.21% to close at $2.4535. The broader crypto market gained 2.62%, taking the total market cap to $3.410 trillion.

Speculation about the SEC withdrawing its Ripple appeal could drive XRP toward $3. However, an actual withdrawal may send the token through its 2018 all-time high of $3.5505. Conversely, XRP could drop below $2 if the SEC files its opening brief.

Unlock Exclusive XRP Price Insights: Discover what the SEC’s next move could mean for XRP’s future. Don’t miss our expert analysis here – read now!

Bitcoin Rallies on Upbeat US Economic Data

Meanwhile, bitcoin (BTC) moved closer to the $100k level on Friday. Upbeat US economic indicators signaled a resilient economy, driving demand for riskier assets. The ISM Manufacturing PMI rose from 48.4 in November to 49.3 in December, just below the neutral (50) level. BTC climbed to an eight-day high of $98,836 following the data.

Positive market sentiment also drove demand for crypto-related stocks, which had been under pressure earlier in the week. MicroStrategy (MSTR) surged by 13.22%, while Marathon Holdings Group (MARA) jumped by 14.12%. Friday’s breakouts contributed to the Nasdaq Composite Index’s 1.77% rally.

Beyond the economic data, market sentiment toward a pro-crypto Capitol Hill also fueled BTC demand. ETF store President Nate Geraci shared a collage of pro-crypto posts, stating,

“Not sure why, but I get the sense something might be changing w/ SEC’s approach to crypto… Welcome to 2025.”

US BTC-Spot ETF Market Inflows Bolster Demand

On Thursday, January 2, the US BTC-spot ETF market posted net outflows of $242.3 million. However, demand shifted materially on Friday, January 3, supporting a BTC move toward $100k. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $357.
• ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $222.6 million.

Excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had net inflows of $655 million on Friday. US BTC-spot ETF market flows remain crucial for BTC price trends.

US Strategic Bitcoin Reserve Proposal

Progress toward a US Strategic Bitcoin Reserve (SBR) could more significantly impact BTC and the broader crypto market.

On Thursday, Anthony Scaramucci suggested the Trump administration could soon acquire 500,000 BTC. Scaramucci listed the Senate Banking Committee Chair Tim Scott and Treasury Secretary Scott Bissent as advocates for an SBR. A significant US government purchase would tilt the supply-demand balance firmly in BTC’s favor, potentially driving BTC to new highs.

Bitcoin Price Outlook

On Friday, January 3, BTC advanced by 1.09%, following Thursday’s 2.60% rally to close at $97,878.

Near-term BTC price trends hinge on US-BTC-spot ETF market flows and US SBR developments. Bipartisan support for an SBR and BTC-spot ETF market inflows could push BTC toward its record high of $108,231, while setbacks may pull BTC toward the $90,742 support level.

Market Outlook for XRP and BTC

As 2025 begins, XRP and BTC face pivotal moments. Regulatory developments, including the SEC’s Ripple appeal and ETF market trends, remain critical. Broader influences, such as Federal Reserve policies and global regulatory shifts, will also influence the crypto market’s trajectory.

Stay updated here with our expert insights for a deeper understanding of these pivotal developments.