XRP News Today: SEC Closed Meeting and a Potential Ripple Settlement?

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Updated: Aug 1, 2024, 02:13 GMT+00:00

Key Points:

XRP declined by 0.72% on Wednesday, July 31, ending the session at $0.6232.
SEC vs. Ripple settlement hopes drove XRP to a session high of $0.6591 before ending the day in negative territory.
Updates from the SEC closed meeting and SEC vs. Ripple case-related news require consideration.

XRP Revisits $0.65 for the First Time Since March

On Wednesday, July 31, XRP declined by 0.72%. Partially reversing a 4.27% rally from Tuesday, July 30, XRP ended July up 31.09% to $0.6232. Significantly, XRP revisited the $0.65 handle for the first time since March.

Senator Elizabeth Warren and SEC Chair Gary Gensler

On Wednesday, SEC vs. Ripple case-related chatter drew investor interest. Candidate for United States Senate in Massachusetts and lawyer John E. Deaton commented on the recent SEC vs. Binance filing, saying,

“This is further evidence that GaryGensler should resign immediately. In the Ripple case, I was forced to sue the SEC and file a Motion to Intervene in order to protect retail investors. In that case, I argued Gensler and the SEC were violating 76 years of established case law. In other words, the claims were not supported by law. In return, the SEC attacked me personally and misled the Court. The judge, a lifelong Democrat, appointed by President Obama, ultimately agreed with me and my 75K clients.”

John E. Deaton represented 75k XRP investors in the SEC vs. Ripple case, contributing to the Programmatic Sales of XRP ruling.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test, setting a legal precedent in crypto cases.

Deaton added,

“Now, after causing billions of dollars in damages to retail investors, Genlser’s SEC is backing off some of its absurd claims. Gensler, at the direction of Senator Elizabeth Warren, lied under oath, on more than one occasion. As Brad Garlinghouse points out, if the rules were so clear, as stated by Gensler, why are his lawyers backing off those very clear rules?”

Court rulings favoring cryptos could be pressuring the SEC to change tactics. There could also be political pressure from the US administration as Trump continues to woo the crypto vote.

SEC Closed Meetings and settlements

The SEC will hold a closed meeting on Thursday, August 1, amid increasing scrutiny of SEC vs. crypto cases.

News of the closed meeting fueled speculation of further settlement talks between the SEC and Ripple. According to the Sunshine Act Notice, institution and settlement of injunctive actions are also on the agenda.

Following the pivotal filing in the Binance case, the SEC may drop its plans to appeal against the Programmatic Sales of XRP ruling, potentially paving the way for a settlement in the remedies-related part of the case.

In July 2023, Judge Torres also ruled that Ripple violated US securities laws for selling unregistered XRP to institutional investors.

Pro-crypto lawyer Bill Morgan recently commented on the matter of settlements and appeals, saying,

“Settlements generally end matters in dispute, including appeal rights in the current proceedings.”

The injunction-related agenda item may relate to the SEC’s remedies-related opening brief filing in March 2024. The SEC pursued a $2 billion penalty and an injunction prohibiting XRP sales to institutional investors.

While Ripple may favor a settlement to avoid appeals, it is unlikely to agree to an injunction prohibiting XRP sales to institutional investors.

Nevertheless, a settlement would likely boost XRP demand.

Settlements: XRP Price Impact

On July 13, 2023, XRP rallied from $0.4696 to a session high of $0.9327 in response to the Programmatic Sales ruling. However, XRP fell below the $0.45 handle in August 2023 over fears of an SEC appeal.

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Investors should remain alert amidst increasing speculation about a settlement. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

XRP Weekly Chart sends bullish price signals.

XRPUSD 010824 Weekly Chart

Daily Chart

XRP remained comfortably above the 50-day and 200-day EMAs, confirming the bullish price signals.

A break above the July 31 high of $0.6591 could give the bulls a run at the $0.6609 resistance level. An XRP breakout from the $0.6609 resistance level could signal a move toward the $0.70 handle.

SEC vs. crypto case-related updates and SEC activity require consideration.

Conversely, an XRP drop below $0.60 could give the bears a run at the $0.5739 support level.

With a 14-day RSI reading of 66.53, XRP could climb to the July 31 high of $0.6591 before entering overbought territory.

Daily Chart affirms the bullish price signals.

XRPUSD 010824 Daily Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.