XRP News Today: SEC Appeal Looms as Gensler’s Era Ends; SBR Talk Boosts BTC

SEC vs. Ripple: A New Year, a New Chair, and the Appeal

Markets focused on the SEC v Ripple case on Thursday, January 2, as the SEC’s opening brief deadline loomed. SEC Chair Gensler wrapped up 2024 by bolstering the SEC’s legal enforcement division, promoting seasoned crypto litigators to senior positions. The move signaled an intent to file the opening brief, a crucial step in challenging the Programmatic Sales of XRP ruling.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. This landmark decision diluted the SEC’s regulatory authority over crypto exchanges and trading, setting a significant precedent for the US digital asset space.

If the SEC files the opening brief, it would leave Trump’s nominated SEC Chair Paul Atkins to influence the SEC’s stance on the appeal. SEC Chair Gensler steps down on January 20, coinciding with Trump’s inauguration.

Amicus Curiae John E. Deaton reacted to Chair Gensler’s imminent departure, stating that 19 days was too long. SEC Chair Gensler could continue pursuing US crypto firms during his remaining days in office. Ripple experienced a similar fate in 2020 when the SEC filed its lawsuit just before Chair Jay Clayton stepped down as Chair.

However, there is a significant difference in 2025. The incoming SEC Chair is crypto-friendly and likely to end the SEC’s era of regulation through enforcement.

Markets are optimistic that the revamped SEC might align with Trump’s pro-crypto agenda, potentially concluding the Ripple case and other ongoing actions, such as those involving Coinbase (COIN).

On Tuesday, December 31, Ripple Chief Legal Officer Stuart Alderoty shared a wishlist for the US digital asset space, calling for clear regulatory principles, including:

• The SEC only has jurisdiction over security transactions.
• A token is never a security, although it can be the subject of a security transaction.
• The SEC’s reach doesn’t expand based on a self-serving view of who it thinks is more ‘deserving’ of disclosures.
• The notion that a token can ‘evolve’ from a security to a non-security is a made-up fallacy with no footing in the law.

Conflicts of Interest in Gensler’s SEC

Crypto-related conflicts of interest have marred Gary Gensler’s tenure as SEC Chair. Deaton summed up the impact of the SEC vs. Ripple case on Ripple’s business, saying,

“I do not believe one can properly estimate the damage to Ripple’s business caused by the sweeping nature of the SEC’s complaint against Ripple and XRP.”

Deaton also underscored the crypto-related conflicts of interest that led to an Office of Inspector General investigation, saying,

“After 7 years of being publicly traded, this time four years ago, Jay Clayton, Bill Hinman, Mark Berger, and others at the SEC – as they were walking out the SEC’s door – filed the most significant non-fraud SEC enforcement action in modern history, claiming ALL XRP, regardless of how you acquired them, constituted unregistered securities. […] Then those same people who pushed for the case against Ripple/XRP to be filed, went on to work with or for Ripple/XRP’s competitors.”

Deaton concluded,

“But when you look at the circumstances surrounding how this case was filed, including the massive conflicts of interests, and the fact that people behind the lawsuit went on to help or work for competitors of Ripple/XRP, you don’t have to be a fan to call it out.”

Findings from the OIG’s investigation into potential crypto-related conflicts of interest within the SEC could coincide with the agency’s opening brief filing. US lawmakers may increase pressure on the SEC to withdraw the appeal if the investigation reveals targeted actions to benefit ethereum (ETH) or protect US banks’ remittance businesses.

XRP Price Trends

On Thursday, January 2, XRP advanced by 3.03%, following Wednesday’s 11.89% surge to close at $2.4004. Significantly, XRP continued outperforming the broader market, which gained 2.42%, taking the total market cap to $3.320 trillion.

Rising bets on the SEC withdrawing its Ripple appeal could support a return to $3. An actual withdrawal might send XRP through its 2018 all-time high of $3.5505. Conversely, suggestions that the SEC will continue to pursue the appeal could drag XRP below $2.

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 and Speculation on US Strategic Reserves

Meanwhile, bitcoin (BTC) also trended higher on Thursday. Speculation intensified about BTC becoming a US strategic reserve asset (SBR), boosting buyer demand.

Anthony Scaramucci suggested that the US government could soon buy 500,000 BTC, saying,

“They’ll probably buy another four or five hundred thousand BTC. Let me tell you why I think it will happen ok. Trump wants it to happen and he’s got the Senate Banking Committee. Tim Scott wants it to happen. He’s going to be the chair of the Senate Banking Committee. Bissent wants it to happen.”

Scaramucci also referred to the SAB 21 bill, saying that Democrats under 60 years of age voted for the bill. He believes that the bipartisan vote for SAB 21 suggests that the majority of Democrats would also favor a strategic BTC reserve, saying,

“If BTC is a digital gold and we have $600 billion of gold on reserve at our Federal Reserve Bank, you’re telling me we couldn’t put $75 or $100 billion of BTC on reserve?

Deaton reacted to Scaramucci’s comments, saying,

“If the U.S. Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”

However, Deaton remains skeptical. He suggested that Trump may create an SBR Wallet to manage the 207,189 BTC, which is currently held by the USG, making BTC a strategic reserve asset. He also thinks the USG could offer an incentive program, enabling taxpayers to pay taxes in BTC. The USG would add tax payments in BTC to the SBR Wallet.

Progress toward a US Strategic BTC Reserve would be a boon for BTC and the broader crypto market. Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset. If Trump, Congress, and the Treasury Department are on board, the Fed could be the deciding vote.

Bitcoin Price Outlook

On Thursday, January 2, BTC rose 2.60%, following Wednesday’s 1.06% gain to close at $96,823.

Near-term BTC price trends depend on US-BTC-spot ETF market flows and US SBR developments. USG support for an SBR and BTC-spot ETF market inflows could drive BT toward its record high of $108,231. Conversely, US BTC-spot ETF market outflows and uncertainty toward an SBR may drag BTC toward the $90,742 support level.

Market Outlook for XRP and BTC

As 2025 begins, XRP and BTC find themselves at pivotal moments. Regulatory developments, including the SEC’s Ripple appeal and ETF market trends, will influence market sentiment. Broader factors, such as Federal Reserve policies and global regulatory shifts, will also influence the crypto market’s trajectory.

Stay updated here with our expert insights for a deeper understanding of these pivotal developments.