XRP News Today: SEC Ripple Lawsuit Update and ETF Speculation Impact

The Wednesday Overview

On Wednesday, XRP gained 0.22%. After a 4.86% slide on Tuesday, XRP ended the session at $0.6892.

SEC vs. Crypto Cases Leave XRP Trailing the Broader Market

There was no SEC v Ripple case-related news to consider on Wednesday. Barring a surprise settlement, investors must wait for the court filing on March 22. The SEC must file its remedy-related brief.

The SEC will argue for a punitive penalty for Ripple selling unregistered XRP to US institutional investors. During remedies-related discovery, Ripple provided the SEC with post-complaint contracts governing XRP sales to institutional investors. Ripple also provided 2022/2023 financial statements.

Judge Analisa Torres could impose a punitive penalty if Ripple continued breaching Section 5 of the 1933 US Securities Act after the complaint.

Conversely, Ripple will use US case law to limit the penalty for breaking securities laws. However, demonstrating there were no post-complain breeches could be pivotal.

Beyond the Ripple case, the outcome of an investigation into conflicts of interest within the SEC will impact XRP.

Office of Inspector General Investigation into the SEC Remains Ongoing

In February, Empower Oversight announced an investigation into crypto conflicts of interest was nearing its end. The outcome of the OIG investigation could decide the fate of the SEC v Ripple case.

Empower Oversight hit the crypto news wires in 2021, filing a lawsuit against the SEC. The government watchdog alleged SEC officials were biased against Ripple Labs. In 2022, Empower Oversight referred the matter of conflicts of interest to the Office of Inspector General (OIG).

The EO v SEC case and the OIG investigation connect to the SEC v Ripple case.

Empower Oversight claims former SEC Director William Hinman received millions of dollars from former employer Simpson Thacher while at the SEC. Simpson Thacher forms part of a group that promotes Enterprise Ethereum.

Hinman famously said bitcoin (BTC) and ether (ETH) were not securities in 2018. According to the Hinman speech-related documents from the SEC v Ripple case, Hinman continued meeting with Simpson Thacher, ignoring warnings from the SEC Ethics Division. After leaving the SEC, Hinman returned to Simpson Thacher.

The outcome of the OIG investigation could force the SEC to end plans to appeal the Programmatic Sales of XRP ruling. Since the SEC filed charges against Ripple, the SEC made at least six attempts to shield the Hinman documents relating to the 2018 speech under client-attorney privilege.

The SEC threat to appeal the Programmatic Sales ruling may delay US applications for XRP-spot ETFs. However, if the SEC ends plans to appeal the Programmatic Sales ruling, XRP-spot ETFs could join ETH-spot ETF applications in the queue.

XRP Price Action

Daily Chart

XRP hovered well above the 50-day and 200-day EMAs, sending bullish price signals.

A return to the $0.70 handle would support a move to the $0.7467 resistance level.

OIG investigation-related news, crypto-spot ETF chatter, and SEC v crypto case-related updates need consideration.

However, a drop below the $0.6609 support level would give the bears a run at the 50-day EMA and the trend line.

The 14-day RSI reading, 63.58, suggests an XRP move to the $0.7467 resistance level before entering overbought territory.

4-Hourly Chart

On the 4-hourly, XRP remained above the 50-day and 200-day EMAs, confirming the bullish price trends.

An XRP breakout from the $0.70 handle would give the bulls a run at the $0.7467 resistance level.

However, a fall through the $0.6609 support level would bring the 50-day EMA into play.

The 4-hourly RSI, with a reading of 56.18, indicates an XRP move to the $0.7467 resistance level before entering overbought territory.