XRP News Today: Ripple vs. SEC – Will the Agency Pursue an Appeal? BTC at $98k

SEC vs. Ripple: Appeal Opening Brief Filing Deadline Looms

On Wednesday, December 25, the SEC v Ripple case remains in the spotlight. The SEC’s appeal-related opening brief filing deadline of January 15 is fast approaching. Despite the looming deadline, uncertainty lingers about whether the agency will pursue its appeal against rulings in the Ripple case.

In October, the SEC requested a 90-day extension, pushing the filing deadline beyond the US Presidential Election. A Kamala-Harris election victory would have likely encouraged the SEC to pursue its appeal. However, Trump’s re-election, his administration’s pro-crypto agenda, and the SEC overhaul have introduced doubts about the agency’s next steps.

Democrats SEC Chair Gary Gensler and Commissioner Jaime Lizarraga will leave the SEC before Trump’s first day in office. Democrat Commissioner Caroline Crenshaw succumbed to the Republican Party’s power play on Capitol Hill. The failed renomination vote ensures the Democrats have no representation at the SEC on January 21.

Incoming SEC Chair Paul Atkins and Republican Commissioners are expected to support Trump’s crypto-friendly policies. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal. This process could now favor Ripple’s position.

OIG Investigation and Ripple Case Repercussions

While Ripple’s legal battle evolves, the outcome of an investigation into alleged crypto conflicts of interest within the SEC could also draw scrutiny. In February, Empower Oversight, a US government whistleblower, announced the Office of Inspector General (OIG) was nearing a conclusion regarding potential ethics violations within the SEC.

The investigation relates to former SEC Director of the Division of Corporate Finance William Hinman, a central figure in the Ripple case.

In an infamous 2018 speech, Hinman announced that bitcoin (BTC) and ethereum (ETH) were not securities. Hinman’s comments drew criticism because of his connections with the legal firm Simpson Thacher, part of a group promoting Enterprise Ethereum.

Empower Oversight claimed Hinman received millions of dollars from Simpson Thacher while working at the SEC. Hinman returned to Simpson Thacher after leaving the agency.

Court documents also revealed that Hinman continued meeting with Simpson Thacher despite warnings from the SEC’s Ethics Division. Hinman was not the only high-ranking member of the SEC to move to crypto-linked firms. Former SEC Chair Jay Clayton joined One River Asset Management, a BTC and ETH-focused hedge fund.

On Tuesday, pro-crypto lawyer John E. Deaton commented on the news of former SEC enforcement director Gurbir S. Grewal joining the law firm Milbank, saying,

“No one in this industry should give business to Milbank. Not only did Gurbir Grewal intentionally hurt this industry, he lied before Congress when questioned by Warren Davidson. He lacks integrity. Period.”

The outcome of the OIG Investigation could bring firms, including Simpson Thacher and Milbank, unwanted attention.

XRP Price Trends: To Appeal or Not Appeal?

On Tuesday, December 24, XRP advanced by 2.88%, following Monday’s 2.62% gain, closing at $2.3237. XRP underperformed the broader market, which advanced by 3.45% to a market cap of $3.360 trillion. Uncertainty about the SEC appeal filing left XRP trailing the wider market.

Near-term trends will hinge on whether the SEC files its opening brief. Should the SEC file its opening brief, XRP may face heightened selling pressure, risking a drop below $1.50. Conversely, a decision to withdraw the appeal could propel XRP toward its January 2018 all-time high of $3.55.

A withdrawal would set the Programmatic Sales of XRP ruling as a crucial legal precedent and pave the way to an XRP-spot ETF market.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. This precedent could end the SEC’s legal cases against crypto firms supporting secondary crypto sales.

Unlock Exclusive XRP Price Insights: Discover what the SEC’s next move could mean for XRP’s future. Don’t miss our expert analysis here – read now!

Bitcoin Eyes $100K Amid Market Speculation

On Tuesday, bitcoin (BTC) broke a three-day losing streak, rising to a session high of $99,434. Speculation about one of the Magnificent 7 acquiring BTC contributed to the positive session.

The Kobeissi Letter discussed the prospects of US firms purchasing BTC, saying,

“There is now a 77% chance of at least one Magnificent 7 company buying bitcoin in 2025. The odds of a Magnificent 7 company buying bitcoin before 2026 have jumped from 49% to 77%, according to Kalshi. This comes as Michael Saylor has called on Microsoft, and other technology giants, to buy bitcoin. Prediction markets see more bitcoin adoption ahead. What’s your 2025 bitcoin target?”

Microsoft (MSFT) shareholders recently voted against the tech giant adopting BTC as a balance sheet asset at December’s annual shareholders’ meeting.

Microsoft currently opposes adopting BTC as a balance sheet asset. However, one MAG7 company approving BTC could open the floodgates.

US BTC-Spot ETF Market Gets No Holiday Cheer

Despite Tuesday’s gains, the US BTC-spot ETF market faced a fourth day of net outflows ahead of the holidays. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $83.2 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $75.0 million.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust’s (IBIT) flow data, the US BTC-spot ETF market had net outflows of $149.7 million. The current outflow trend follows Wednesday’s Fed rate cut and projection of fewer rate cuts in 2025, weighing on spot-ETF demand.

Tuesday’s outflows could pressure BTC early in the Wednesday session, particularly if IBIT fails to end the outflow streak.

Bitcoin Price Outlook

On Tuesday, December 24, BTC gained 4.06%, reversing a 0.50% loss from Monday, closing at $98,678.

Near-term BTC price trends will remain hinged on US BTC-spot ETF flow trends and SBR-related news.

Continued spot ETF outflows could weigh on BTC demand, potentially pulling BTC toward the $90,742 support level. Conversely, rising bets on a Q1 2025 Fed rate hike and progress toward an SBR may reignite demand for spot ETF inflows and BTC.

Market Outlook for XRP and BTC

XRP and BTC are at critical junctures as 2024 draws to a close. The SEC’s decision on Ripple’s case and the trajectory of BTC-spot ETF flows will define the broader crypto market landscape. As regulatory policies and macroeconomic factors continue to evolve, these pivotal moments may herald significant shifts in the digital asset ecosystem.

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