XRP News Today: Ripple’s Stablecoin and SEC Appeal Fuel Market Concerns for XRP

XRP Drops Toward $0.50 Amid SEC Appeal Speculation

On Saturday, October 19, XRP declined by 0.58%, reversing a 0.62% loss from the previous session to close at $0.5442.

XRP underperformed the broader crypto market, which advanced by 0.14%, taking the total crypto market cap to $2.297 trillion.

Uncertainty about the SEC appeal against rulings in the Ripple case remained an XRP headwind.

John E. Deaton and Senator Elizabeth Warren Face Off in a Debate

John E. Deaton went head to head with anti-crypto Senator for Massachusetts Elizabeth Warren, talking crypto. Deaton addressed Senator Warren and Vice President Kamala Harris, stating,

“I sued the government because the SEC had done something really bad to small retail investors, and a lifelong Democratic judge agreed with me. I did it all pro bono, and this token XRP was called legal because of my work, I won Lawyer of the Year, Consumer Advocate of the Year, Defender of Freedom award because I did it for free.“

Deaton went on to say,

“And guess what, last week that crypto billionaire that she’s talking about that has supported me just donated millions of this XRP token to Harris’s campaign. If I didn’t do what I did, sue the SEC on behalf of small retail investors, that donation to your candidate of choice Senator would not have happened. So, Madam Vice President, if you’re watching, you’re welcome.”

Deaton referred to Judge Analisa Torres and her ruling on Programmatic Sales of XRP during the debate with Senator Warren. In July 2023, Judge Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Programmatic Sales of XRP Ruling in Focus

The SEC filed its Form C, Civil Appeal Pre-Argument Statement, on October 17, offering investors insights into its appeal strategy. While the SEC is targeting Ripple’s executives, Brad Garlinghouse and Chris Larsen, the agency’s challenge to the Programmatic sales ruling is significant.

If the SEC successfully overturns the ruling, XRP would fall under SEC jurisdiction concerning secondary market sales. US crypto exchanges could delist XRP to avoid violating US Securities laws, impacting XRP adoption. Typically, crypto tokens respond adversely to delistings and positively to listing on major exchanges.

Ripple’s Stablecoin and SEC Delays

In August 2024, Ripple started testing its stablecoin Ripple USD (RLUSD). Significantly, Ripple stated that it had not received regulatory approval, and RLUSD was not available to purchase or trade. The SEC could drag its heels on approving RLUSD since the agency referenced the stablecoin in its remedies-related reply brief.

In the reply brief, the SEC labeled Ripple’s plans to launch its stablecoin as the issuance of a new unregistered crypto asset.

XRP Price Outlook: Will it Break $1.00 or Drop Below $0.50?

Investors await the SEC’s appeal-related opening brief. If the SEC provides sound arguments, highlighting issues in Judge Torres’s ruling, XRP may drop below $0.50. However, XRP could mirror its July 2023 rally to $0.9327 if the SEC offers weak arguments that ease fears of a successful appeal.

Pro-crypto lawyer Jeremy Hogan shared his views on the SEC appeal, saying,

“It’s ONLY about money. I would give Ripple 8-9/10 odds. Okay, I don’t really understand how odds work but I’d say Ripple has a 90% chance of winning at least one issue and an 80% chance of winning both major issues.”

Outlook

Investors should track SEC appeal-related developments, which could significantly influence XRP price trends. Stay informed with our latest news and analysis to better manage your XRP and broader crypto market exposure.

XRP Price Action

Daily Chart

XRP hovers below the 50-day and 200-day EMAs, affirming bearish price signals.

A breakout from the 200-day and 50-day EMAs could allow the bulls to test the $0.5739 resistance level. Furthermore, a break above the $0.5739 resistance level may signal a move toward the $0.6609 resistance level.

Ripple case-related news and SEC vs. crypto case-related updates require consideration.

Conversely, a fall through the $0.50 level could bring the trend lines into play.

With a 14-day RSI reading of 45.83, XRP could drop below $0.50 before entering oversold territory.