XRP News Today: SEC Decision Looms as XRP Faces Volatility; BTC Dips Below $100K

SEC vs. Ripple: Will the SEC Withdraw Its Appeal?

It could be a pivotal week ahead for Ripple and XRP. Gary Gensler’s departure from the SEC leaves the agency under interim leadership, with Trump-nominated Paul Atkins undergoing the confirmation process. Last week, reports suggested the acting SEC Chair may review and request stays for non-fraud-related crypto cases.

In the SEC v Ripple case, Judge Torres imposed a $125 million penalty based on a first-tier civil violation of the US Securities Act, with no allegations of fraud or recklessness. The legal clarity sets the stage for Commissioners Hester Peirce or Mark Uyeda to signal the SEC’s intentions early in Trump’s second presidential term.

The SEC’s upcoming Closed Meeting on Thursday, January 23, may offer further insights. According to the Sunshine Act Notice, agenda items include:

• Institution and settlement of injunctive actions;
• Institution and settlement of administrative proceedings;
• Resolution of litigation claims; and
• Other matters relating to examinations and enforcement proceedings.

Plans to end the appeal would remove the uncertainty impacting XRP price trends. Conversely, successfully appealing the Programmatic Sales of XRP ruling risks US crypto exchanges delisting XRP to avoid falling under the SEC’s regulatory watch, triggering an XRP sell-off.

SEC Appeal’s Role in US XRP-Spot ETFs

An SEC withdrawal of its appeal would enable the agency to approve XRP-spot ETF applications, driving XRP demand.

Bitcoin’s 114% rise since the launch of US BTC-spot ETFs highlights the transformative potential for XRP in such a market.

Amicus Curiae Attorney John E. Deaton Calls for SEC to Dismiss Crypto Cases

John E. Deaton, who represented 75,000 XRP investors in the Ripple case, called on the SEC to dismiss its crypto cases on Sunday, January 19, saying,

“If a new Golden Age of innovation is indeed upon us, coupled with the incoming President of the United States utilizing the technology in a manner some might argue pushes legal boundaries more aggressively than any of the companies above have, all non-fraud cases, including Ripple, Coinbase, Kraken, and Dragonchain, etc, need to be dismissed.”

XRP Price Trends: Volatility Amid Legal Uncertainty

On Sunday, January 19, XRP tumbled 9.55%, following Saturday’s 0.81% loss, to close at $2.9549. The token underperformed the broader crypto market, which declined by 4.00% to a total market cap of $3.42 trillion.

Near-term trends hinge on the SEC’s plans to pursue its appeal. If the agency withdraws or pauses the Ripple case, XRP could retarget its all-time high of $3.5505. Conversely, XRP could drop below $2.5 if the SEC continues challenging the Programmatic Sales ruling.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Trump’s Crypto Influence: BTC and Meme Coins

Meanwhile, bitcoin (BTC) faced selling pressure in recent sessions. President-elect Donald Trump launched the OFFICIALTRUMP (TRUMP) meme coin on Friday, January 17, redirecting investor interest. TRUMP surged 350% to $50.62 on Monday, January 20, while BTC briefly dropped below $100k.

TRUMP reached a Sunday high of $79.35 before tumbling as investors reacted to news of Melania Trump launching her meme coin Melania Meme (MELANIA) on the same day. Despite the pullback, TRUMP ranks 18 by crypto market cap, while MELANIA languishes at #3011.

John E. Deaton remarked on the Trump’s foray into the crypto world, stating,

“Having only spoken to Michael Saylor once, very briefly, at the Bitcoin conference, it’s fair to say I don’t know him personally. Yet, somehow, I’m willing to bet ALL my Bitcoin that Saylor did NOT advise the Trump Team to launch meme coins.”

Trump’s Day-One Executive Orders Crucial for BTC Demand

As Donald Trump’s inauguration looms, speculation about his day-one executive orders will likely intensify. Earlier this month, Anthony Scaramucci said the incoming Trump administration could purchase 500,000 BTC, stating the Senate Banking Committee Chair, Tim Scott, and Treasury Secretary Scott Bessent advocate a US Strategic Bitcoin Reserve (SBR).

Senator Lummis introduced the Bitcoin Act in December. The bill proposes the US government accumulate one million BTC (5% of the total supply) over five years, with a minimum mandatory holding period of 20 years.

A US SBR would zap supply, significantly tilting the supply-demand balance firmly in BTC’s favor.

Deaton recently suggested BTC could reach $1 million if the US government passes Senator Lummis’ bill, 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.”

Another potential day-one executive order could be Trump repealing President Biden’s veto of the SEC’s SAB 121 regulation vote.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

A repeal could also boost BTC demand.

Bitcoin Price Outlook

On Sunday, January 19, BTC dropped by 2.07%, following Saturday’s 0.15% dip, closing at $101,435. Despite the retreat, BTC closed about $100k for the third consecutive session.

BTC’s price trends hinge on Trump’s day-one executive orders and plans for an SBR.

Repealing the SAB 121 veto, US BTC-spot ETF inflows, and favorable US SBR developments could push BTC toward its record high of $108,231. Conversely, weak support for an SBR on Capitol Hill or a resumption of BTC-spot ETF outflows could drag BTC toward $95k.

As Trump’s inauguration looms, traders should monitor crypto-related chatter from the incoming administration.

Market Outlook: XRP and BTC at Critical Junctures

XRP and BTC face pivotal moments as regulatory and market dynamics unfold. XRP’s trajectory hinges on the SEC’s legal strategy, while BTC’s future depends on Trump’s crypto policies and ETF flows. Broader regulatory shifts could further influence market sentiment in the coming weeks.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Read more here.