XRP News Today: SEC Crypto Conflicts Heat Up—Impact on XRP Price?

XRP on the Move: Is an Appeal Withdrawal Imminent?

On Saturday, February 8, XRP advanced 0.89%, following Friday’s 3.11% rally to close at $2.4196. XRP outperformed the broader market, which rose 0.51% to a total market cap of $3.11 trillion.

SEC Under Pressure: OIG Investigation and Legal Conflicts

This week, the SEC and the Office of Inspector General (OIG) faced increasing pressure to release findings from an investigation into SEC crypto conflicts of interest.

US whistleblower Empower Oversight sued the SEC, demanding disclosure of the OIG’s findings. Empower Oversight referred the alleged SEC crypto conflict of interest to the OIG in 2022.

The OIG’s investigation centered around former SEC Director of the Division of Corporation Finance William Hinman. In 2018, Hinman publicly stated that Bitcoin (BTC) and Ethereum (ETH) are not securities. However, at the time, Hinman maintained ties with his former employer, Simpson Thacher, a law firm promoting Enterprise Ethereum.

Before referring the case to the OIG, Empower Oversight had sued the SEC in 2021. The lawsuit claimed Hinman received millions from his former employer while helping guide the agency’s crypto regulations at the SEC.

Hinman’s Role Amid Ripple’s Legal Battle

On Saturday, February 8, Hinman was under the spotlight after appearing as a panelist on regulatory developments under the new Trump administration.

Amicus Curiae attorney John E. Deaton shared a clip of Hinman saying the people are a little gun-shy going into the building these days based on past experience.

Regarding Hinman’s Ether speech, Deaton remarked:

“When you look at the people who received a copy of the draft, many SEC divisions were involved, except Ethics. Prior to the speech, Hinman was told several times he was violating the financial conflict laws because he kept meeting with his partners, especially considering his partners had business before the SEC.”

Deaton also commented on the SEC’s legal efforts to protect Ether speech-related documents in the Ripple case. Despite at least six attempts, the SEC failed to shield the Ether speech-related documents under attorney-client privilege. The documents revealed that Hinman continued to meet Simpson Thacher employees despite warnings from the SEC Ethics Division.

The SEC has not released the OIG’s findings despite Empower Oversight’s lawsuit and an agency overhaul. Given the rising pressure, speculation is growing that the SEC may withdraw its appeal in the Ripple case. The SEC filed its appeal-related opening brief in the Ripple case on January 15, after receiving the OIG’s findings but before Gary Gensler stepped down as SEC Chair.

The appeal challenges Judge Torres’ July 2023 ruling, which found that Programmatic Sales of XRP did not satisfy the third prong of the Howey Test—a key argument in determining whether an asset is a security.

XRP Price Trends: Is a Breakout Imminent?

XRP’s near-term trajectory hinges on the SEC’s next move in the Ripple case. If the agency withdraws its appeal, XRP could surge past its all-time high of $3.5505 to target $4. Withdrawing the appeal may allow the SEC to approve XRP-spot ETF applications, potentially boosting institutional demand. Conversely, XRP could tumble toward $1.50 if the SEC pursues its appeal.

XRP Price Action

Daily Chart

Despite Saturday’s gain, XRP sits below the 50-day Exponential Moving Average (EMA) while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

If XRP climbs back to $2.50, bulls may target the 50-day EMA. A break above the 50-day EMA could signal a move toward $3.

Conversely, an XRP drop below $2.30 could bring the $1.9299 support level into play. A fall through the support level may signal a drop toward the February 3 low of $1.7024.

With a 14-day Relative Strength Index (RSI) reading of 38.12, XRP could drop below $2 before entering oversold territory (RSI below 30).

Market Outlook: Regulatory Uncertainty Remains a Risk

XRP’s outlook remains tied to regulatory uncertainty, particularly the SEC’s appeal decision and broader regulatory shifts. Additionally, US foreign policy and macroeconomic factors, including sentiment toward Fed rate cuts, may impact XRP investor sentiment.

While Trump’s re-election initially boosted sentiment, his subsequent tariff policy pressured XRP prices. XRP has fallen from $3.1341 to a February 3 low of $1.7938 on tariff jitters before partially recovering. Economists expect US tariffs to drive import prices higher and fuel inflation pressures, potentially delaying Fed rate cuts.

View our latest technical and legal analysis here, for deeper insights into the SEC’s appeal strategy and its impact on XRP,