XRP News Today: Ripple Faces Court Ruling Amidst US Election Crypto Debate

InThe Wednesday Overview

On Wednesday (May 29), XRP fell by 0.83%. Following a 1.12% loss on Tuesday (May 28), XRP ended the session at $0.5233.

Ripple CEO Brad Garlinghouse Announces $25 Million Contribution

On Wednesday, US politics and the Presidential Election remained a focal point for the crypto community.

After emphasizing the importance of crypto votes on Tuesday, Ripple CEO Brad Garlinghouse announced a significant political move on Wednesday.

The Ripple CEO announced a $25 million contribution to Fairshake, saying,

“It’s critical that the US catch up with other leading economies and develop sensible (and CLEAR) rules for crypto. Ripple’s latest $25M contribution to Fairshake is an investment in the inevitable march of progress and adoption of crypto and blockchain technologies – the future of finance – and a message to backward looking politicians that their failed policies will not be tolerated!”

According to their website, Fairshake aims to support candidates committed to securing the United States as the home to innovators building the next generation of the internet.

Ripple Chief Legal Officer Stuart Alderoty had this to say about the announcement,

“Crypto has emerged as a pivotal issue in the 2024 elections. Ripple will continue to support policies, and policymakers, that move the U.S. forward. We must catch up to other major global centers that have committed to clear rules of the road for the industry.”

Significantly, Brad Garlinghouse committed $25 million annually until anti-crypto rhetoric ends on Capitol Hill.

Other crypto-linked firms contributing to Fairshake include Coinbase (COIN), Kraken, and Andreessen Horowitz.

The contributions to Fairshake highlight the significance of the US Presidential Election for the crypto market. Senator Cynthia Lummis summarized the shifting attitudes toward crypto on Capitol Hill, stating,

“When I came to the U.S. Senate nobody knew anything about crypto assets. Nobody knew the difference between Bitcoin and other crypto assets. We have worked hard to educate Washington and are now seeing the fruits of those labors.”

The Lummis and Gillibrand Responsible Financial Innovation Act

In 2022, Senators Cynthia Lummis and Kirsten Gillibrand introduced the Responsible Financial Innovation Act. The legislation aims to give the Commodity Futures Trading Commission more authority to regulate crypto assets, promoting innovation while protecting consumers.

A Republican Party victory in November could support the Responsible Financial Innovation Act and end the SEC reign of regulation by enforcement.

The Democratic Party’s anti-crypto stance, spearheaded by Senator Elizabeth Warren, has different US digital asset space plans.

Senator Elizabeth Warren is behind the Digital Asset Anti-Money Laundering Act. Senators Elizabeth Warren and Roger Marshall drafted the bill with the help of the American Bankers Association. The bill would impose banking-style regulations on the crypto market, including anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks.

In May, Republican front-runner Donald Trump put cryptos on the US political map. His support for crypto could give the Republicans the upper hand, with over 52 million Americans owning crypto. A Republican Party victory could be a boost for the crypto market.

While US politics took center stage, updates from the ongoing SEC vs. Ripple case also warranted investor attention.

SEC vs. Ripple: Ripple Files Reply Letter to Support Motion to Seal

On Wednesday, defense attorney James Filan shared the latest updates from the SEC vs. Ripple case, saying,

“Ripple has filed a reply letter in further support of its Motion to Seal documents in connection with the SEC’s Motion for Judgment and Remedies.”

In the reply brief, Ripple strengthened its arguments vis-à-vis the need to seal non-public, confidential information, including its financial statements.

After a court ruling on the Motion to Seal, the courts will decide the penalty for beaching US securities laws.

XRP Price Action

Daily Chart

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

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

SEC vs. Ripple case-related updates need consideration.

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

The 14-day RSI reading, 48.70, suggests an XRP fall to the $0.48 handle before entering oversold territory.