XRP News Today: SEC Case Updates and Ripple’s Strategy Amid Fed Fears

The Tuesday Overview

On Tuesday (June 11), XRP slid by 3.26%. Following a 0.20% loss from Monday (June 10), XRP ended the session at $0.4808.

Fed Fear Sinks XRP and the Broader Crypto Market

Uncertainty about the Fed interest rate decision and economic projections impacted buyer demand for XRP and the broader crypto market.

Significantly, XRP ended the session at sub-$0.49 for the first time since April 13.

While the immediate focus is on the Fed and the Fed rate path, the ongoing SEC v Ripple case remains an XRP headwind.

SEC vs. Ripple: Motion to Seal

There was no SEC vs. Ripple case-related news to influence buyer demand for XRP. Investors awaited the court ruling on the Ripple Motion to Seal. Ripple filed the Motion to Seal to seal non-public information, including financial statements and agreements with business partners.

The SEC responded to the Motion to Seal, arguing that information considered in a court ruling should be a matter of public record. Disclosure of contractual agreements could affect future business dealings as Ripple expands its remittance business globally.

However, the court ruling on the penalty for breaching US securities laws will likely impact XRP more.

The SEC filed its remedies-related opening brief, pressing the courts for an almost $2 billion penalty and an injunction prohibiting XRP sales to institutional investors. An injunction prohibiting XRP sales to institutional investors could impact plans to grow the US business.

Moreover, the SEC targeted Ripple plans to launch a stablecoin, calling the Ripple stablecoin a new unregistered crypto asset.

Ripple expects a court ruling in the coming months, leaving XRP in limbo. Investors expect the SEC to appeal the Programmatic Sales of XRP ruling after the verdict.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

Despite the uncertainty shrouding XRP, Ripple continues to expand, unfazed by the SEC and the pending court rulings.

Standard Custody and New Hiring to Lead the Stablecoin Initiative

On Tuesday, Ripple CEO Brad Garlinghouse announced the hiring of Jack McDonald, saying,

“2 major acquisitions in ~1 year under Ripple’s belt with Metaco and Standard Custody, and a big welcome JackMcDonald! Jack is no stranger to the XRPL ecosystem (and to me!) – thrilled to have him join team Ripple, leading our stablecoin initiatives.”

The announcement followed news of Ripple completing the acquisition of Standard Custody. Jack McDonald will remain CEO of Standard Custody while leading the stablecoin team.

In February, Brad Garlinghouse discussed the acquisition of Standard Custody, highlighting the importance of custody for the crypto market, saying,

“We think there are some basic building blocks around crypto that are important to make crypto successful. Custody is an important part of that. For institutions to be able to custody their own as well as their customers’ digital assets, we think it is very important.”

However, XRP had a muted response to the latest Ripple news, with the Fed and the SEC vs. Ripple case being the focal points.

XRP Price Action

Daily Chart

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

An XRP break above the bottom trend line and the $0.50 handle would support a move to the top trend line. A breakout from the top trend line would bring the 50-day EMA into play.

US inflation numbers, the Fed, and SEC vs. crypto case-related updates require investor consideration.

Conversely, an XRP break below $0.48 could give the bears a run at the $0.45 handle.

The 14-day RSI reading, 33.24, indicates an XRP drop below the $0.4750 handle before entering oversold territory.