XRP News Today: Ripple’s Legal Battle Enters Critical Phase; BTC Hits $97K

SEC vs. Ripple Appeal Deadline: What’s Next?

January 15 is a pivotal date for the SEC vs. Ripple case and the US digital asset space. The SEC must file its appeal-related opening brief today. Speculation has intensified over whether the SEC will challenge the Programmatic Sales of XRP ruling, a critical decision that impacts the classification of XRP as a security.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not meet the criteria for the third prong of the Howey Test. The ruling enabled US crypto exchanges to relist XRP and ETF issuers to file applications for US XRP-spot ETFs, potentially fueling demand for the token.

Notably, the deadline comes just days before SEC Chair Gary Gensler steps down, making way for a Trump-appointed successor.

All signs suggest the SEC will proceed with its appeal. Chair Gensler recently strengthened the agency’s litigation team by promoting seasoned crypto litigators to senior positions.

The SEC Chair has also withheld findings from an Office of Inspector General (OIG) investigation relating to potential crypto conflicts of interest within the agency. The OIG shared its findings with Chair Gensler in December, who has yet to make them public. The investigation relates to Ethereum (ETH), Ripple, and XRP.

An appeal, however,l could be short-lived. Markets anticipate that incoming SEC Chair Paul Atkins could reverse course on the agency’s crypto-enforcement efforts, potentially withdrawing the appeal.

Former SEC lawyer Marc Fagal stated,

“The appeal will continue for now, and that process takes about a year. But there is the possibility that a new administration decides to move to dismiss the appeal. That’s not something I recall happening before, but it’s possible and maybe likely.”

Ripple’s Expectations and the SEC’s Next Steps

Ripple’s leadership expects the SEC to proceed with the appeal. Chief Legal Officer Stuart Alderoty criticized Gensler’s decision to move forward despite imminent leadership changes, stating:

“On January 20, Gensler’s war on crypto ends at the SEC. We asked the SEC to agree to postpone the filing of their opening brief in their appeal of our victory (current deadline Jan 15) – and they refused. What a waste of time and taxpayer dollars! Nevertheless, we are confident in our position on appeal and look forward to working with new SEC leadership to resolve this matter.”

The SEC’s refusal to delay its filing mirrors the SEC’s previous approach toward Ripple. Former SEC Chair Jay Clayton filed the Ripple lawsuit in December 2020, just days before leaving office.

XRP Price Trends: Appeal Filing in Focus

On Tuesday, January 14, XRP rallied 5.70%, following Monday’s 0.79% gain to close at $2.6684. Significantly, XRP outperformed the broader crypto market, which advanced by 2.44%, taking the total market cap to $3.28 trillion. Market optimism over the SEC’s limited chances of overturning the Ripple rulings fueled XRP demand.

XRP’s price trajectory hinges on the Ripple case. XRP could drop toward $2 if the SEC files a compelling opening brief, challenging the Programmatic Sale of XRP ruling. Conversely, XRP could break above its 2018 record high of $3.5505 if the agency withdraws its appeal.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin’s Rally Amid Trump Transition

Meanwhile, bitcoin (BTC) continued recovering from Monday’s brief dip below $90k. Market anticipation of crypto-friendly executive orders on Trump’s first day in office drove BTC demand. Expectations include a repeal of the SEC’s SAB 121 regulation.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. President Joe Biden vetoed a bipartisan vote against the regulation. The regulation makes it costly for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

Trump could also boost expectations for a US Strategic Bitcoin Reserve (SBR), tilting the supply-demand balance further in BTC’s favor. The Trump administration will need Congress, the Federal Reserve, US Treasury Department to approve BTC as a strategic reserve asset.

In a recent interview, Anthony Scaramucci said Senate Banking Committee Chair Tim Scott and US Treasury Secretary Scott Bessent want it to happen. That could leave US Federal Reserve Chair Jerome Powell as the final say on a US SBR.

Bitcoin Price Outlook

On Tuesday, January 14, BTC gained 2.19%, reversing Monday’s 0.10% loss, closing at $96,566.

BTC’s price outlook depends on the US CPI Report, BTC-spot ETF market flows, and Strategic Bitcoin Reserve (SBR) updates.

Hotter-than-expected US inflation numbers could dampen expectations of a first half (H1) of a 2025 Fed rate cut. A more hawkish Fed rate path may drive BTC-spot ETF outflows, potentially impacting BTC demand. Conversely, softer inflation figures may retrigger bets on a March Fed rate cut, potentially driving BTC toward its $108,231 record high.

However, US SBR-related updates could trump the influence of the Fed rate path on sentiment. While increasing support for an SBR could send BTC to new highs, a lack of bipartisan support may drag it below $90K.

Market Outlook: A Critical Juncture for XRP and BTC

XRP and BTC face decisive moments influenced by regulatory and macroeconomic developments. XRP’s future hinges on the SEC’s appeal strategy, while BTC’s trajectory depends on ETF flows and SBR-related progress. Broader regulatory policies and monetary trends will continue influencing sentiment across the crypto market.

Stay ahead with our expert analysis of the SEC’s next move and its implications for XRP and Bitcoin. Explore real-time updates and insights to navigate these pivotal market moments effectively. Read more here.