XRP News Today: SEC Ends Ethereum 2.0 Investigation, Ripple’s Future

The Wednesday Overview

On Wednesday, June 19, XRP advanced by 0.51%. Partially reversing a 2.65% slide from Tuesday, June 18, XRP closed the session at $0.4939.

SEC vs. Ripple: Consensys News Bolsters Ripple Position

There were no SEC vs. Ripple case-related updates for investors to consider on Tuesday, June 19.

Investors await a court verdict against Ripple for breaching US securities laws. In July 2023, Judge Analisa Torres ruled that XRP sales to institutional investors breached US securities laws. Furthermore, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test.

The crypto community expects the SEC to appeal against the Programmatic Sales of XRP ruling at the end of the Ripple case.

However, the SEC case to appeal against the Programmatic Sales of XRP ruling took a hit on Tuesday, June 19.

On Tuesday, Consensys announced that the SEC ended its investigation into Ethereum 2.0, saying,

“Today we’re happy to announce a major win for Ethereum developers, technology providers, and industry participants: the Enforcement Division of the SEC has notified us that it is closing its investigation into Ethereum 2.0. This means that the SEC will not bring charges alleging that sales of ETH are securities transactions.”

The decision to close the investigation could affect the chances of successfully overturning the Programmatic Sales of XRP ruling.

Moreover, the decision could influence the pending court ruling on the Coinbase (COIN) Motion for Interlocutory Appeal.

SEC vs. Coinbase: Consensys and the Coinbase Motion for Interlocutory Appeal

Coinbase filed the Motion for Interlocutory Appeal in April 2024 to contest the court ruling, denying, in large part, the Coinbase Motion to Dismiss (MTD).

Judge Failla did not dismiss the charges against Coinbase for operating as an unregistered securities exchange, surmising that,

“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”

Pro-crypto lawyer MetaLawMan highlighted the possible implications of the SEC ending its investigation into Consensys, saying,

“The SEC Lawyers argued repeatedly (and successfully) in the Coinbase hearing that: Digital Asset + Ecosystem = Security. But now they acknowledge that ETH (a digital asset + ecosystem) is NOT a security.”

If Judge Failla considers the SEC stance with Consensys, she could grant the Coinbase Motion for InterlocutoryAppeal. A Coinbase win against the SEC would further diminish SEC hopes of overturning the Programmatic Sales of XRP ruling.

SEC plans to appeal against the Programmatic Sales of XRP ruling remains a headwind.

Ripple Chief Legal Officer Stuart Alderoty reacted to the news on X (formerly Twitter), posting,

“A big win for Consensys, though questions remain. Does this mean the SEC thinks Consensys’ offers and sales of ETH are not securities transactions and/or that ETH itself is not a security? What will Gensler say if now asked? What is the status of MetaMask and staking? This is no way for a government to regulate.”

XRP Price Action

Daily Chart

XRP remained well below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the trend lines would support a move to the 50-day EMA. A breakout from the 50-day EMA could give the bulls a run at the 200-day EMA.

SEC vs. crypto case-related updates require investor attention.

Conversely, an XRP fall through the $0.48 handle could signal a drop to the $0.45 handle.

With a 14-day RSI reading of 45.77, XRP may fall to the $0.45 level before entering oversold territory.