XRP News Today: SEC Disbands Crypto Unit – What It Means for Ripple; BTC Eyes $100K

SEC vs. Ripple: SEC Crypto Unit Disbanded – What Next for the Ripple Case?

On Thursday, February 20, SEC activity remained under scrutiny as investors awaited Ripple case-related updates.

The SEC announced a significant restructuring of its crypto enforcement division, stating:

“The Securities and Exchange Commission today announced the creation of the Cyber and Emerging Technologies Unit (CETU) to focus on combatting cyber-related misconduct and to protect retail investors from bad actors in the emerging technologies space. The CETU, led by Laura D’Allaird, replaces the Crypto Assets and Cyber Unit and is comprised of approximately 30 fraud specialists and attorneys across multiple SEC offices.”

In the digital asset space, the CETU will focus on fraud relating to blockchain technology and crypto assets.

Former SEC Office of Internet Enforcement Chief John Reed Stark commented on the ongoing SEC overhaul under Acting Chair Mark Uyeda:

“It’s Official: Acting SEC Chair Mark Uyeda Has Cancelled the SEC Crypto Unit (and has secretly “disappeared” SEC Crypto Unit Co-Chief Mark Sylvester.) N.B. The SEC’s website still features the Crypto Unit as up and running and Sylvester as its Co-Chief.”

Thursday’s announcement strengthened expectations that the SEC could shift its focus away from non-fraud crypto cases. Earlier this month, the SEC reassigned its chief crypto litigator, Jorge Tenreiro, to the IT department, effectively setting the stage for the crypto enforcement unit’s dissolution.

These internal changes have also fueled speculation that the SEC may withdraw its appeal challenging the Programmatic Sales of XRP ruling in the Ripple case.

XRP-Spot ETFs Progress – Why It Matters

Meanwhile, progress toward a US XRP-spot ETF market gathered momentum on February 20. Fox Business journalist Eleanor Terrett reported:

“Grayscale’s XRP ETF (19b-4 filing) has officially been posted to the Federal Register. All this means is that the clock starts now for the SEC to engage and either approve or deny on or before October 18.”

Key timelines for Grayscale’s 19b-4 application:

• The SEC has 45 days from the Federal Register publication date to approve or disapprove the application.
• If extended, the SEC can extend by 45 days, then 90 days, and finally 60 days, allowing for a maximum review period of 240 days.
• The SEC could approve or disapprove the application at any time before the review window closes.

Grayscale’s XRP-spot ETF application is significant. In August 2023, Grayscale won its appeal against the SEC, forcing the agency to reconsider its disapproval of Grayscale’s application to convert the Grayscale Bitcoin Trust into the first BTC-spot ETF. The court victory paved the way for the US BTC-spot ETF market.

Pro-crypto lawyer Bill Morgan highlighted the slow progress of US regulatory approval for a US XRP-spot ETF, stating:

“Brazil’s approval of an XRP ETF was a road runner in comparison.”

This week, Brazil’s SEC equivalent, Comissao de Valores Mobiliarios (CVM), approved the first Latin American XRP-spot ETF.

XRP Price Trends: Ripple Case and XRP-Spot ETFs in Focus

On Thursday, February 20, XRP dropped by 1.75%, partially reversing Wednesday’s 6.90% rally to close at $2.6901. XRP trailed the broader crypto market, which advanced by 1.52%, taking the total market cap to $3.18 trillion.

Uncertainty over the SEC’s appeal strategy in the Ripple case weighed on XRP’s performance. Looking ahead, Ripple case-related updates and US XRP-spot ETF market developments remain the key price drivers. XRP Price Scenarios:

• Bullish Case: If the SEC withdraws its appeal, XRP could break past its all-time high of $3.5505.
• ETF Catalyst: An XRP-spot ETF approval could push prices toward $5, driven by institutional inflows.
• Bearish Case: A continued SEC appeal and an ETF rejection could send XRP below $1.50.

Read expert analysis on what could drive XRP to new highs here.

Bitcoin Eyes $100K Return on Strategy (formerly MicroStrategy) News

While investors monitor SEC activity and Ripple case-related news, bitcoin (BTC) is eying a return to $100K.

On Wednesday, February 19, Strategy (formerly MicroStrategy) Chairman and Founder Michael Saylor announced a $2 billion public offering of convertible senior notes. The announcement comes at a pivotal time for BTC, which has failed to break above $100k for twelve consecutive sessions.

Supply-demand trends have recently shifted as investors await fresh catalysts to influence BTC price action.

US BTC-Spot ETF Market Eyes Three-Day Outflow Streak

Recent US BTC-spot ETF market flows suggest a shift in sentiment toward BTC’s price trajectory. On February 19, the US BTC-spot ETF market registered $64.1 million in net outflows. US BTC-spot ETFs faced outflows for the third straight day on February 20. According to Farside Investors, February 20 ETF flows were as follows:

• ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $98.3 million.
• Grayscale Bitcoin Mini Trust (BTC) reported net outflows of $61.1 million.
• Grayscale Bitcoin Trust (GBTC) had net outflows of $33.5 million.

Excluding iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC), the US BTC-spot ETF market reported total net outflows of $168.8 million, continuing a gloomy February.

As of February 19, the US BTC-spot ETF market had net outflows of $501.2 million for the month, potentially marking the first monthly outflows since August 2024.

Key Factors Influencing BTC-Spot ETF Demand:

• US Tariffs: BTC dropped from $105.993 to a February low of $91,274 after President Trump announced tariffs on Canada, China, and Mexico. Tariffs could increase US import costs, fueling inflation concerns.
• Fed Rate Path: Fed Chair Powell, the FOMC Meeting Minutes, and US economic data signal a more hawkish Fed stance.
• Slow progress toward a US Strategic Bitcoin Reserve (SBR).

Despite the silence on a US Strategic Bitcoin Reserve (SBR), markets remain optimistic that BTC could become a US strategic reserve asset, cushioning BTC’s downside. If the Bitcoin Act passes through Congress, the US government could tilt the supply-demand balance back in BTC’s favor.

The Bitcoin Act proposes the US government acquire one million BTC over five years, with a 20-year mandatory holding period.

Bitcoin Price Outlook

On February 20, BTC advanced by 1.93%, adding to Wednesday’s 0.79% gain, closing at $98,251.

In Friday’s session, US services PMI data could influence sentiment toward the Fed rate path and BTC-spot ETF demand.

Key BTC Price Scenarios:

• Bearish: Higher US Services PMI, rising tariff threats, and government resistance to a US SBR could drag BTC toward $90,000.
• Bullish: Softer US services sector data, easing trade tensions, and progress toward a US SBR may push BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments Remain Key

Investors should monitor the following key developments:

1. The SEC’s Ripple case appeal decision
2. US tariff policies and inflationary impact
3. US Services PMI data and Fed commentary.
4. Updates on the Strategic Bitcoin Reserve (SBR).
5. BTC-spot ETF market flows and institutional adoption.

Crucially, will the SEC withdraw its Ripple case appeal, and the US government support an SBR? Keep an eye out for our updates and the latest insights here.