XRP News Today: SEC Lawsuit Update, Ripple’s Market Forecast as Deadline Nears

The Thursday Overview

On Thursday (May 16), XRP declined by 0.64%. Partially reversing a 3.63% rally from Wednesday (May 15), XRP ended the session at $0.5156.

SEC vs. Ripple Case: Court Deadline Approaching

There was no SEC vs. Ripple case-related news to consider on Thursday (May 16). Investors await SEC, Ripple, and third-party filings opposing the omnibus letter motions. According to the court schedule, Ripple, the SEC, and third parties must file opposing briefs by Monday (May 20). It could be a significant date for the ongoing SEC vs. Ripple case.

The courts will rule on the omnibus letter motions and then begin deliberations on the penalty Ripple must pay for breaching US securities laws.

Amidst increasing scrutiny of the SEC vs. Ripple case, investors should also consider the prospects of an SEC appeal against the Programmatic Sale of XRP ruling. The SEC vs. Ripple case and other SEC cases against crypto firms highlight the absence of a US regulatory framework for digital assets.

US Lawmakers Deliver a Favorable Vote for the Crypto Market

Ripple Chief Legal Officer Stuart Alderoty reacted to a vote on Capitol Hill, saying,

“Finally, something D’s and R’s can agree on: Gensler’s unauthorized overreach when it comes to crypto will not be tolerated.”

The US Senate passed a CRA (Congressional Review Act) repealing SAB 121. SAB 121 would force companies, including banks, to include assets under custody on their balance assets. The rule would require firms to include client-owned cryptos.

Senator Cynthia Lummis had this to say about the vote,

“The Senate passing a CRA overturning SAB 121 is a win for financial innovation and a clear rebuke of the way the Biden admin and Gary Gensler have persecuted crypto. It also marks the 1st time Congress has passed standalone crypto legislation. We are just getting started.”

While the vote was good news, US lawmakers have yet to deliver a much-needed regulatory framework for the US digital asset space. Lawmakers have presented two bills to Congress, one supporting innovation, the other looking to impose banking-style regulations that may curtail growth in the digital asset space.

Senator Elizabeth Warren introduced the Digital Asset Anti-Money Laundering Act. The bill proposes countering the financing of terrorism (CFT) and anti-money laundering (AML) frameworks. Notably, Senator Roger Marshall said that he authored the bill with Senator Warren and the help of the American Bankers Association.

The second bill is the Lummis and Gillibrand Responsible Financial Innovation Act. Senators Cynthia Lummis and Kirsten Gillibrand introduced the bill to protect consumers while supporting innovation. The bill would give the Commodity Futures Trading Commission authority to regulate the digital asset space.

Neither bill has made progress, with the outcome of the US Presidential Election likely to influence crypto legislation.

XRP Price Action

Daily Chart

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

An XRP move through the 50-day EMA would give the bulls a run at the 200-day EMA. A break above the 200-day EMA could bring the $0.5739 resistance level into play.

SEC activity and SEC vs. crypto case-related news need consideration.

Conversely, an XRP fall through the trend lines could give the bears a run at sub-$0.50.

The 14-day RSI reading, 47.23, indicates an XRP drop below the $0.48 handle before entering oversold territory.