XRP News Today: SEC Appeal Deadline Sparks Investor Anxiety; BTC Drops to $93k

SEC vs. Ripple Case: Programmatic Sales Ruling Sparks Debate

On Sunday, December 29, the SEC v Ripple case reignited debate about the court rulings. Pro-crypto lawyer Bill Morgan reacted to Fox Business Senior Correspondent Charles Gasparino’s criticism of Judge Analisa Torres’ ruling in the case.

Gasparino called the Ripple case unnecessary but questioned the Summary Judgment, claiming the Judge set a precedent for lower disclosure standards for retail investors.

Bill Morgan defended Judge Torres’ rulings, stating,

“You think Judge Torres is doltish because she decided that Ripple’s institutional sales directly to institutions are investment contracts and programmatic sales in the secondary market were not investment contracts despite the vastly different facts between the different sales and despite the Howey test being supposedly facts specific.”

Bill Morgan added,

“Judge Torres’s ruling does not “allow” for lower disclosure standards for retail. It did not even extend to other secondary market sales. The need for securities level disclosure only arises if programmatic sales are investment contracts.”

Morgan highlighted that the Judge ruled on the evidence, noting that the SEC’s evidence was weak regarding the expectation of profit prong of the Howey Test. He also underscored the significance of Amicus Curiae attorney John E. Deaton’s evidence that ‘retail buyers didn’t expect profits from Ripple’s efforts or even know about Ripple.’

Gasparino criticized what he considered contradictions in Judge Torres’ interpretation of securities law. He argued that Ripple’s private institutional offerings (which require minimal disclosures) violated securities laws, while public sales (which typically require full disclosures) were deemed not to be securities transactions.

He likened this to Apple (AAPL) stock buyers not needing disclosures because they prioritize trading over company operations, calling it a threat to investor protection.

SEC Appeal Filing Looms Leaving XRP Investors on Edge

The ongoing debate underscores the case’s complexities. The SEC could address perceived evidentiary shortcomings in its appeal-related opening brief.

The SEC must file its opening brief by the January 15 deadline and will give investors an understanding of whether the agency has sufficient evidence to overturn the rulings.

For XRP investors, the Programmatic Sales of XRP ruling is significant. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

If the SEC successfully appeals, XRP may fall under its regulatory purview. This would likely lead to US crypto exchanges delisting XRP to avoid violating US securities laws. Demand for XRP would likely materially weaken in such a scenario.

XRP remains priced above $2, despite the looming appeal filing, reflecting investor hopes that incoming SEC Chair Paul Atkins and crypto-friendly Commissioners will withdraw the appeal.

XRP Price Trends: Can It Revisit $3?

On Sunday, December 29, XRP slid by 4.08%, reversing Saturday’s 1.75% gain to close at $2.0932. XRP underperformed the broader market, which declined by 2.08% to a market cap of $3.190 trillion.

Near-term trends hinge on the SEC’s appeal plans. A compelling SEC brief could drive XRP below $1.50, while a withdrawal might trigger a rally past its December 3 high of $2.9070.

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 Under Pressure Amid ETF Outflows

Meanwhile, bitcoin (BTC) also faces significant pressures from regulatory developments. On Sunday, BTC fell further from its December 17 all-time high of $108,231. Speculation about the viability of BTC as a US strategic reserve asset and BTC-spot ETF market outflows weighed on investor sentiment.

CryptoQuant.com founder and CEO Ko Young Ju raised doubts about a strategic bitcoin reserve (SBR) on Saturday, saying,

“I question whether the US, while continuing to grow as other economies stagnate, would adopt Bitcoin as a strategic asset.“

He also suggested that the US would need its economic dominance to be under threat so that bitcoin could become a strategic reserve asset.

Ko Young Ju’s comments reflect market sentiment toward the Fed’s recent economic projections. The upbeat economic projections and expectation of fewer Fed rate cuts impacted BTC-spot ETF market flows, contributing to BTC’s drop below $95k.

The US BTC-spot ETF market reported net outflows of $377.6 million in the week ending December 27. Weak demand ended a three-week inflow streak.

Bitcoin Price Outlook

On Sunday, December 29, BTC declined by 1.69%, reversing Saturday’s 0.89% gain to close at $93,476.

Near-term BTC price action hinges on US BTC-spot ETF market flow trends and strategic bitcoin reserve (SBR) developments.

Further BTC-spot ETF outflows and a US government BTC sale could impact BTC demand, potentially dragging BTC toward the $90,742 support level. Conversely, BTC-spot ETF market inflows and progress on SBR discussions may drive BTC toward $100k.

Market Outlook for XRP and BTC

As 2024 draws to a close, XRP and BTC face pivotal moments. The SEC’s Ripple appeal and BTC-spot ETF flows could redefine regulatory approaches and investor sentiment in digital asset markets. Regulatory decisions and macroeconomic trends remain key to influencing digital asset markets. Stay updated with our expert analysis here.