XRP News Today: Ripple Braces for Summer Verdict Amid SEC Appeal Uncertainty

The Sunday Overview

On Sunday (June 2), XRP declined by 1.14%. Reversing a 0.33% gain from Saturday (June 1), XRP ended the week down 2.90% to $0.5129. XRP saw heavier losses than the broader crypto market. The total crypto market cap fell by 0.28% on Sunday.

SEC vs. Ripple: Plans to Appeal at Risk

There was no SEC vs. Ripple case-related news to influence buyer appetite for XRP. Investors await a court ruling on the Ripple Motion to Seal. After the court ruling, the courts will decide the penalty Ripple must pay for breaching US securities laws.

In March, the SEC argued for an almost $2 billion penalty and an injunction prohibiting XRP sales to institutional investors.

Ripple expects the verdict over the summer. After the court decision, the SEC may appeal against the Programmatic Sales of XRP ruling. In October 2023, Judge Analisa Torres denied an SEC Motion for Interlocutory Appeal. The court ruling forced the SEC to drop the charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse to expedite the Ripple case.

However, the SEC plans to appeal against the Programmatic Sales of XRP ruling face several challenges. These include an ongoing investigation into alleged crypto conflicts of interest within the SEC, the SEC v Coinbase (COIN) case, and the US Presidential Election.

Empower Oversight and the Office of Inspector General

In February, Empower Oversight stated that the Office of Inspector General (IG) was in the final stages of investigating possible crypto conflicts of interest within the SEC. The investigation relates to former SEC director William Hinman. Empower Oversight filed a lawsuit against the SEC in 2021, claiming that Hinman received millions of dollars from his former employer, Simpson Thacher.

Simpson Thacher forms part of a group that promotes Enterprise Ethereum. Hinman delivered a speech in 2018, saying bitcoin (BTC) and ethereum (ETH) were not securities.

Hinman was a central figure in the SEC vs. Ripple case. The SEC made six attempts to shield documents related to the 2018 speech before the courts ordered the SEC to give Ripple the documents.

The speech-related documents revealed that Hinman continued to meet with Simpson Thacher despite warnings from the SEC Ethics Division. Hinman returned to Simpson Thacher after leaving the SEC.

If the IG finds evidence of crypto conflicts of interest, the SEC could end plans to appeal against the Programmatic Sales of XRP ruling. Significantly, the outcome of the US Presidential Election also needs consideration.

US Presidential Election: Trump Goes Pro Crypto

Former US President and Republican Party front-runner Donald Trump recently plugged cryptos, targeting the US crypto vote, saying,

“If you like crypto in any form…and it comes in many forms…if you’re in favor of crypto, you better vote Trump.”

A Republican Party victory could end the era of regulation through enforcement. Trump could select a new SEC Chair, and the SEC may end its plans to reverse the Programmatic Sales of XRP ruling. Evidence of crypto conflicts of interest could also empower the Republican Party to pressure the SEC into accepting the court ruling.

SEC vs. Coinbase: The Motion to Dismiss

In March, Judge Katherine Failla denied, in large part, the Coinbase Motion to Dismiss (MTD). Coinbase responded to the ruling in April by filing a Motion for Interlocutory Appeal.

If Judge Failla grants the Motion for Interlocutory Appeal, Coinbase could appeal against the Motion to Dismiss ruling. A Coinbase victory would further weaken the SEC argument about classifying cryptocurrencies (excl. BTC) as securities.

A court ruling on the Motion for Interlocutory Appeal could come at any time. The court ruling could coincide with the findings of the Office of the Inspector General.

Considering the dynamics, investors should continue tracking SEC vs. crypto case-related news and updates from the Office of Inspector General. An end to SEC plans to appeal against the Programmatic Sales of XRP ruling would be XRP price positive.

XRP Price Action

Daily Chart

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

An XRP move through the 50-day EMA could give the bulls a run at the 200-day EMA. A break above the 200-day EMA could signal a run at the $0.5739 resistance level.

Investors should consider ongoing SEC activity and related case developments.

Conversely, an XRP break below the trend lines could give the bears a run at the $0.48 handle.

The 14-day RSI reading, 44.30, suggests an XRP fall to the $0.48 handle before entering oversold territory.