XRP News Today: Ripple Faces Uncertain Future Amid SEC Appeal Speculations

The Saturday Overview

On Saturday (June 8), XRP declined by 1.30%. Following a 4.29% tumble on Friday (June 7), XRP ended the session at $0.4928.

SEC vs. Crypto: The SEC vs. Ripple Court Ruling and Plans for an Appeal

The ongoing SEC vs. Ripple case remains the focal point for the crypto market. Investors awaited the court verdict for Ripple breaching US securities laws by selling XRP to institutional investors.

Ripple could face a punitive penalty and an injunction if the courts ruled that Ripple continued to breach US securities laws after the 2020 complaint.

The SEC asked the courts for a $2 billion penalty and an injunction in the remedies-related opening brief. An injunction would prohibit Ripple from selling XRP to institutional investors. Moreover, an injunction could significantly impact plans to expand in the US.

At the end of the case, XRP could face another period of uncertainty. Investors expect the SEC to appeal against the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

There is speculation that the SEC may decline XRP-spot ETF applications until the end of the appeals process. A summer verdict on the Ripple case could extend the appeals process into 2025.

This week, Ripple CEO Brad Garlinghouse discussed the prospects of an XRP-spot ETF market, suggesting a first XRP-spot ETF approval in 2025.

SEC vs. Coinbase: Motion for Interlocutory Appeal Ruling Pending

However, a court ruling from the SEC v Coinbase (COIN) could end SEC plans to appeal against the Programmatic Sales of XRP ruling. Investors await a court ruling on the Coinbase Motion for Interlocutory Appeal. Coinbase filed the Motion for Interlocutory Appeal in April after the court denied, in large part, its Motion to Dismiss (MTD).

In September 2023, lawyer and contender for the Massachusetts seat, John E. Deaton, believed the SEC would settle the Ripple case if the court granted the Coinbase MTD. While there are slim chances of a settlement, the SEC could face pressure to end its plans to contest rulings from the Ripple case.

The US Presidential Election and Political Pressures

In September 2023, John E. Deaton gave good reasons for the likely SEC reaction to a Coinbase win, saying,

“I doubt the Solicitor General would allow an appeal in that scenario, one that could reach the Supreme Court, allowing for the High Court to strip away, not only the SEC’s power, but all other federal agencies as well.”

The SEC could also face pressure from Capitol Hill. If Republican Party front-runner Donald Trump takes the lead in the polls, President Joe Biden could try to woo crypto voters. An SEC appeal against the Programmatic Sales of XRP ruling may be unwanted news, especially if Coinbase wins its case.

Ripple Chief Legal Officer Stuart Alderoty had this to say about the US Presidential Election and the crypto vote,

“It’s great when crypto uses its collective voice through calls, letters, emails to Congress, but if crypto doesn’t VOTE it all just becomes noise. Politicians on both sides of the aisle must understand that votes are on the line.”

John E. Deaton is contesting Senator Elizabeth Warren for the Massachusetts seat. While Deaton is fighting for more than crypto, ousting Senator Warren would be a boon for the US digital asset space.

In 2023, Senator Elizabeth Warren introduced the Digital Asset Anti-Money Laundering Act. The bill would impose banking-style anti-money laundering (AML) and countering the financing of terrorism (CFT) frameworks on crypto firms.

In December 2023, Senator Roger Marshall admitted to drafting the bill with Senator Warren and the help of the American Bankers Association.

The focus on Senator Warren intensified in 2023 after she paraded US bank CEOs in a Banking Committee hearing on Capitol Hill. On Cue, JPMorgan Chase CEO Jamie Dimon famously said,

“If I was the government, I would close it down.”

XRP Price Action

Daily Chart

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

An XRP break above the trend lines could signal a move to the 50-day EMA. A break above the 50-day EMA could give the bulls a run at the 200-day EMA.

SEC vs. crypto case-related news and SEC activity warrant investor attention.

Conversely, an XRP drop below the $0.48 handle could bring the $0.45 handle into play.

The 14-day RSI reading, 37.19, suggests an XRP fall below the $0.48 handle before entering oversold territory.