XRP News Today: Ripple vs. SEC Case Nears Critical Point; BTC Revisits $95K

Potential SEC Scrutiny of Digital Asset Cases Amid the Ripple Appeal

On Thursday, December 19, Fox Business journalist Eleanor Terrett shared the details of a meeting between staffers for SEC Commissioners Hester Peirce and Mark Uyeda and the Digital Chamber. The Digital Chamber reportedly set priorities for the SEC divisions by considering the incoming administration’s pro-crypto agenda.

Key proposals included:

• Formally stating that the Hinman speech is not SEC guidance and is not to be relied on.
• Initiate an immediate review of all existing digital asset-related investigations, Wells notices, and in-process litigation cases.
• Seek stays for cases that do not include fraud, investor loss, or risk of imminent harm.

These priorities could impact the Ripple case, with the SEC’s appeal-related opening brief due by January 15, 2025.

In August 2024, Judge Analisa Torres ordered Ripple to pay a $125 million penalty for violating US securities laws. The penalty amount fell well short of the SEC’s demand for a punitive $2 billion penalty. The court noted that investors did not suffer pecuniary harm because of the violations, nor did Ripple commit fraud.

A stay on the Ripple case may prompt the SEC to withdraw its appeal, setting the Programmatic Sales of XRP ruling as a crucial legal precedent for the US digital asset market.

An end to the Ripple case would be a boon for XRP, plagued with uncertainty about the SEC’s appeal plans.

Hinman Speech and Ripple: A Contentious History

Renouncing Hinman’s 2018 speech would be icing on the cake for Ripple. In an infamous speech, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

The contentious issue with the speech related to Hinman’s connection with the legal firm Simpson Thacher, which is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

During the SEC vs. Ripple case, the SEC made at least six attempts to shield Hinman’s speech-related documents from the public under the attorney-client privilege. However, the court rejected these motions. The documents revealed that Hinman continued to meet with his former employer, Simpson Thacher, despite SEC ethics division warnings.

In 2021, Empower Oversight, a government whistleblower, filed a lawsuit against the SEC, alleging that former SEC officials were biased against Ripple Lab and XRP. William Hinman is also a central figure in the Empower Oversight v SEC case. Empower Oversight claimed Hinman received millions of dollars from Simpson Thacher while working at the SEC.

An end to the Hinman saga could also benefit the SEC, with incoming Chair Paul Atkins aiming to close the agency’s anti-crypto chapter.

XRP Price Trends: Awaiting Key SEC Decisions

On Thursday, December 19, XRP declined by 3.10%, following Wednesday’s Fed-fueled 10.07% tumble, closing at $2.2376. XRP followed the broader market’s 3.81% drop, bringing the crypto market cap to $3.280 trillion.

US labor market and GDP data signaled a robust US economy, supporting the Fed’s more hawkish rate path. Expectations of a higher-for-longer Fed rate path weighed on risk appetite.

While US economic data and the Fed’s monetary policy will influence XRP price trends, the Ripple case remains the key driver.

If the agency withdraws its appeal, XRP could target January 2018’s all-time high of $3.5505. However, XRP could face initial selling pressure if the SEC files its opening brief by January 15, potentially dragging the token below $2.00.

Explore exclusive XRP price predictions here.

Bitcoin Revisits $95k as US Data Bolsters the Fed’s Rate Path Outlook

On Thursday, bitcoin (BTC) dropped to the $95k level for the first time since December 11. Better-than-expected US labor market and GDP numbers supported the Fed’s more hawkish Fed rate path outlook, weighing on riskier assets.

US initial jobless claims dropped from 242k (week ending December 7) to 220k (week ending December 14), signaling a resilient labor market. A tight labor market may boost wage growth, fueling consumer spending and demand-driven inflation. A higher-for-longer Fed rate path may raise borrowing costs, impacting demand for BTC and other riskier assets.

The US economy also ran hotter than expected in Q3, supporting the Fed’s case for fewer rate cuts.

Will the Fed Rate Path End the US BTC-Spot ETF Market’s Inflow Streak?

On Wednesday, December 18, the US BTC-spot ETF market extended its inflow streak to 15 sessions, the longest since February. BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) continued to ensure the winning streak stayed alive, with net inflows of $359.6 million. Excluding IBIT, the US BTC-spot ETF market had net outflows of $84.3 million.

However, flow trends for the Thursday session suggest the BTC-spot ETF market will end its winning streak. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $128.2 million.
• Grayscale Bitcoin Mini Trust (BTC) reported net outflows of $188.6 million.
• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $108.4 million.

Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $671.9 million, potentially the largest since launching on January 11, 2024.

The US BTC-spot ETF market’s flow trends remain crucial for BTC’s supply-demand dynamics. Thursday’s outflows could leave BTC under selling pressure.

Bitcoin Price Outlook

On Thursday, December 19, BTC declined by 2.4%, following Wednesday’s 5.61% slide, closing at $97,704.

Near-term BTC price trends will hinge on US economic indicators, US BTC-spot ETF flows, SBR-related news, and US government BTC sales. A significant BTC sale by the US government and BTC-spot ETF market outflows could reignite oversupply fears, potentially pulling below $95,000. Conversely, BTC-spot ETF market inflows and progress toward an SBR may drive BTC toward $110,000.

Later today, the US Personal Income and Outlays Report will likely influence sentiment toward the Fed’s rate path. Higher-than-expected Core PCE Price Index numbers could bolster expectations of fewer 2025 Fed rate cuts, potentially fueling BTC-spot ETF outflows.

Market Outlook for XRP and BTC

Both XRP and BTC are at critical junctures. XRP’s future hinges on the SEC’s next move, while BTC remains sensitive to ETF flows and macroeconomic developments. Stay updated with our latest market analysis and expert insights here.