XRP News Today: SEC Drama Spurs Ripple Case Speculation; BTC Hits $102k

SEC Commissioner Crenshaw Renomination and Ripple Case Developments

On Friday, December 13, the SEC overhaul potentially took another step toward ensuring President-elect Trump’s pro-crypto agenda.

Fox Business journalist Eleanor Terrett reported on time running out for the Senate Banking Committee and full Senate vote to renominate SEC Commissioner Caroline Crenshaw, saying,

“With just five days left before Congress adjourns for the year, there’s virtually no time in which to hold both a committee vote and a full Senate vote to renominate SEC commissioner Caroline Crenshaw. To schedule another committee vote, Senator Sherrod Brown would have to give members three days’ notice.”

Terrett added that even if Senator Brown (Chairman of the Senate Banking Committee) scheduled another Committee vote, it would occur on December 18.

If Senator Brown sticks to protocol and doesn’t schedule a vote in less than three days, Senator Chuck Schumer (Senate Majority Leader) would have two days to schedule a full Senate vote. The Senate will reportedly focus on resolving the budget and defense spending bill.

If Crenshaw’s renomination fails, Trump could nominate a new Commissioner. Such a development could significantly alter the SEC’s stance on cryptocurrency regulations in the coming months.

Why Is SEC Crenshaw’s Renomination Significant?

Crenshaw’s potential renomination carries significant implications for Ripple. If reappointed, she could vote to proceed with the appeal against Ripple before the January 15 deadline. The SEC must file its appeal-related opening brief in the Ripple case by January 15.

For Ripple, it could be a case of deja vu. Former SEC Chair Jay Clayton filed the case against Ripple just before leaving the SEC. SEC Chair Gensler could repeat history by filing the opening brief before leaving on January 20.

What Is the SEC Appealing Against in the Ripple Case?

The SEC is challenging the 2023 Summary Judgment and August’s Final Judgment. The appeal against the Summary Judgment and Programmatic Sales of XRP ruling, in particular, is significant.

Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

The Howey test is a legal standard used to decide whether a transaction qualifies as an investment contract and, therefore a security. The third prong relates to the expectation of profits through the work and expertise of others.

If the SEC withdraws the appeal, the Programmatic Sales of XRP ruling would set a crucial legal precedent. This legal precedent would impact the SEC’s cases against crypto exchanges, including Coinbase (COIN) and Binance. Furthermore, it could also limit the SEC’s authority in the crypto space.

XRP Price Volatility and Regulatory Impact

On Friday, December 13, XRP rallied 3.60%, reversing Thursday’s 2.37% loss, closing at $2.4221. XRP outperformed the broader crypto market, which advanced by 1.20%, taking the total market cap to $3.550 trillion.

Optimism surrounding Crenshaw’s renomination and a potential withdrawal of the appeal boosted XRP demand.

Near-term price trends depend on SEC plans to appeal. XRP could fall toward $1 if the SEC files its appeal-related opening brief. Conversely, a withdrawal would likely drive XRP past its January 2018 all-time high of $3.5505.

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BTC Supply-Demand Contingent on Strategic Bitcoin Reserve Progress

Bitcoin (BTC) returned to the $101k level on Friday as investors assessed the progress toward a US strategic Bitcoin reserve (SBR). Crypto advocate and Republican Senator Cynthia Lummis met with incoming Treasury Secretary Scott Bessent on Friday. Senator Lummis suggested that a strategic Bitcoin reserve (SBR) was a talking point, saying,

“Scott Bessent will be a champion for digital assets and a crucial ally in passing my Strategic Bitcoin Reserve. I look forward to working closely with the future Treasury Secretary to restore fiscal responsibility!”

Senator Lummis introduced the Bitcoin Act of 2024, proposing the US government accumulate one billion BTC, 5% of the total supply, over five years. Senator Lummis believes an SBR could halve US debt by 2045.

In November, the Senator spotlit the bill, saying,

“If only there was a way to dig our nation out of debt while ensuring the strength of the US dollar. Oh wait. Bitcoin Act.”

An SBR would make the US government a BTC buyer and, importantly, HODLER, mitigating oversupply risk. The government currently has a 198,109 BTC stockpile, equivalent to $20.16 billion.

Positive Demand Outlook Fuels BTC-Spot ETF Market Inflows

On Friday, the US BTC-spot ETF market looks set to extend its net inflow streak to 12 sessions, matching July’s 12-day inflow streak.

According to Farside Investors,

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $60.0 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $33.2 million.
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $28.4 million.
• However, Grayscale Bitcoin Trust (GBTC) registered net outflows of $106 million.

Excluding iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market reported net inflows of $35.9 million on Friday, following Thursday’s $597.5 million.

The potential for a US SBR, alongside Trump’s pro-crypto agenda, fueled demand for BTC-spot ETFs. A US SBR could firmly tilt the supply-demand balance in BTC’s favor. Such an eventuality could drive BTC to unprecedented levels.

Bitcoin Price Outlook

On Friday, December 13, BTC gained 1.47%, reversing Thursday’s 0.97% loss, closing at $101,394, a new record close.

Near-term BTC price trends will hinge on US BTC-spot ETF market flows, SBR-related news, and US government BTC movements. A substantial BTC sale by the US government could fuel oversupply jitters, potentially pulling prices toward $95,000.

Market Outlook for XRP and BTC

Both XRP and Bitcoin are at pivotal junctures. For XRP, the SEC’s decision regarding the Ripple appeal will likely shape its price trajectory and regulatory outlook.

Meanwhile, Bitcoin’s performance hinges on ETF inflows, Strategic Bitcoin Reserve-related news, and broader macroeconomic conditions. As these developments unfold, market participants should monitor expert analyses and updates closely.

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