XRP News Today: Ripple Legal Officer Fires Back at SEC, Sparks Debate

The Wednesday Overview

On Wednesday, XRP declined by 2.01%. Following a 4.27% slide on Tuesday, XRP ended the session at $0.5740.

Uncertainty About the SEC vs. Ripple Case Lingered

There were no SEC vs. Ripple case-related activities for investors to consider on Wednesday. Nonetheless, the SEC and recent courtroom news remained a hot topic of discussion.

On Wednesday, Ripple Chief Legal Officer Stuart Alderoty reacted to comments from SEC Director Gurbir Grewal, saying,

“Dir. Grewal says the crypto enforcement unit acts with integrity but ignores the Debt Box sanctions for “gross abuse of power,” the Ripple Judge’s admonishment for lack of “faithful allegiance to the law,” and the “arbitrary and capricious” finding in the Grayscale case.”

Alderoty highlighted the key July 2023 Programmatic Sales of XRP ruling, adding,

“On the substance, he cites one portion of the Ripple ruling but ignores that the SEC lost or gave up on most of its claims in the case, including the Court’s rejection of the SEC’s assertion that XRP was in and of itself a security.”

Alderoty targeted the SEC approach to crypto regulatory guidance and creation of confusion before concluding,

“If this Agency wants to honestly repair the institutional damage inflicted (both to itself and the industry) over the last many years in this misguided war on crypto, it needs to get off its soapbox and own up to these truths.”

The targeted comments about the SEC demonstrated frustration within the US crypto community. A lack of a US crypto regulatory framework allows the SEC to regulate through enforcement. Significantly, the lack of appropriate guidelines beyond the Howey Test enables the SEC to target crypto firms with legal action.

SEC vs. Debt Box and the Office of Inspector General Investigation

US lawmakers remained silent despite the increasing judiciary scrutiny of the SEC. There has been no apparent follow-up to a co-signed letter to SEC Chair Gary Gensler. Senator Cynthia Lummis co-signed a letter to SEC Chair Gensler, threatening scrutiny of SEC enforcement cases in response to the SEC vs. Debt Box court order.

In March, Judge Robert Shelby denied the SEC Motion to Dismiss charges the SEC filed against Debt Box. The SEC filed the Motion to Dismiss after Judge Shelby ordered the SEC to show cause why the court should not sanction the SEC for making false and misleading representation to the courts.

US Lawmakers also gave no reaction to news of the Office of Inspector General (IG) investigating reports of crypto conflicts of interest within the SEC.

The outcome of the IG investigation and further action from Judge Shelby could force lawmakers to act.

XRP Price Action

Daily Chart

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

An XRP move through the 200-day EMA would give the bulls a run at the 50-day EMA. A break above the 50-day EMA would support a move toward the $0.6609 resistance level.

SEC activity and SEC vs. crypto-related news need investor consideration.

Conversely, a break below the $0.5740 support level could give the bears a run at the trend line.

The 14-day RSI reading, 42.18, indicates an XRP drop to the trend line before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP sat well below the 50-day and 200-day EMAs. The EMAs affirmed the bearish price signals. Significantly, the 50-day EMA crossed through the 200-day EMA on Wednesday, a bearish price signal.

An XRP move to the $0.60 handle would bring the 50-day and 200-day EMAs into play. A break above the 200-day EMA could signal an XRP move toward the $0.6609 resistance level.

However, a fall through the $0.5740 support level could bring the trend line into play.

The 4-hourly RSI, with a reading of 33.65, suggests an XRP fall through the $0.5740 support level before entering oversold territory.