XRP News Today: SEC Faces Legal Pressure—Could It Drop the Appeal? BTC Moves Higher

Empower Oversight Sues SEC

On Wednesday, February 5, US whistleblower Empower Oversight sued the SEC for failing to release a crypto conflicts of interest probe. Empower Oversight outlined the reasons for the lawsuit, stating:

“The lawsuit, filed today, seeks to compel the agency to release the report, since completed by the SEC Office of Inspector General (SEC OIG). The suit also seeks all associated documents, related to an investigation of William Hinman, former Director of the Division of Corporate Finance at the SEC, and possible conflicts of interest.”

Empower Oversight added,

“The lawsuit alleges that the SEC has failed to respond to numerous Freedom of Information Act (FOIA) requests for records related to the report and the report itself.”

The US whistleblower is not alone in seeking the OIG’s findings. Fox Business journalist Eleanor Terrett filed a Freedom of Information Act (FOIA) request in December, seeking transparency on the OIG’s investigation into potential crypto-related conflicts of interest within the SEC.

The OIG’s findings could impact the SEC’s appeal against the Programmatic Sales of XRP ruling in the Ripple case.

Why Do the OIG Findings Matter?

The OIG investigation centers on former SEC director William Hinman. Empower Oversight alleges that Hinman received millions in payments from his former employer, Simpson Thacher, while working on crypto regulations at the SEC. Simpson Thacher is a legal firm that promotes Enterprise Ethereum.

In 2018, Hinman publicly stated that bitcoin (BTC) and ethereum (ETH) were not securities. Court documents from the Ripple case later revealed that Hinman continued meeting with Simpson Thacher employees despite warnings from the SEC’s ethics division. The SEC failed to shield the documents from the public under attorney-client privilege in the Ripple case, further raising questions about potential conflicts of interest.

If the OIG’s findings reveal conflicts of interest, the SEC may feel compelled to withdraw its appeal. William Hinman returned to Simpson Thacher after leaving the SEC, reinforcing concerns about regulatory bias.

XRP Price Trends: SEC Appeal Uncertainty Weighs on Sentiment

On Thursday, February 6, XRP declined by 2.34%, following Wednesday’s 5.8% slide, closing at $2.3260. XRP underperformed the broader market, which dropped by 0.96% to a total crypto market cap of $3.09 trillion. XRP extended its losing streak to three sessions amid uncertainty about the SEC’s appeal plans. Developments in the Ripple case remain the key driver for XRP.

• If the SEC withdraws its appeal, XRP could rally past its all-time high of $3.5505.
• If the appeal proceeds, XRP may drop below $1.50.

Expert Analysis: How will the SEC’s next move shape XRP’s future? Read more here.

BTC Finds Support Amid Strategic Bitcoin Reserve Developments

While investors track Ripple case-related updates, hopes for a US Strategic Bitcoin Reserve (SBR) bolstered BTC demand.

Dennis Porter, CEO and Co-Founder of Satoshi Act Fund announced:

“MASSIVE BREAKING: The ‘Strategic Bitcoin Reserve’ bill has officially PASSED the House in the state of Utah – The bill now moves onto the Senate!”

Legislation aims to classify BTC as a strategic reserve asset, fueling hopes for a future national SBR. In January, speculation about BTC becoming a US SBR pushed bitcoin to an all-time high of $109,312.

Anthony Scaramucci recently suggested that the US government may acquire a sizeable BTC holding, saying:

“They’ll probably buy another four or five hundred thousand BTC. Let me tell you why I think it will happen ok. Trump wants it to happen and he’s got the Senate Banking Committee. Tim Scott wants it to happen. He’s going to be the Chair of the Senate Banking Committee. Bessent wants it to happen.”

Amicus Curiae attorney John E. Deaton gave his BTC price prediction, stating:

“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.”

The Bitcoin Act, introduced by Senator Cynthia Lummis, proposes that the US government acquires one million BTC over five years with a 20-year mandatory holding period.

Bitcoin Price Outlook

On Thursday, February 6, BTC slipped by 0.03% after falling 1.34% on Wednesday to close at $96,642.

BTC’s near-term price trends remain dependent on multiple factors, including US-China tensions, SBR-related news, the Fed rate path, and US BTC-spot ETF flows.

On Friday, February 7, the US Jobs Report could influence the Fed’s policy stance and BTC price trends. Softer wage growth and higher unemployment could boost Fed rate cut bets and BTC demand. However, tighter labor market conditions may sink expectations of an H1 2025 Fed rate cut, potentially pressuring BTC.

Possible Scenarios:

• Bearish case: Rising trade tensions, a hawkish Fed, and stalled SBR discussions could pull BTC below $90,000.
• Bullish case: De-escalating trade risks, a more dovish Fed, and increasing political support for an SBR could push BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments in Focus

After the recent pullback, investors must consider two key developments: the SEC’s appeal decision and the potential for a US Bitcoin reserve. Both factors could significantly influence institutional adoption and overall market sentiment.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Explore the full analysis here.