XRP News Today: SEC Rule Change Sparks XRP Surge; BTC Rebounds on US Tariff News

SEC Reins In Crypto Litigators

On Monday, February 3, the SEC took another step toward ending its crypto regulation through enforcement, boosting XRP demand. Investigative reporter Robert Faturechi shared the latest development, saying:

“This is significant: Lawyers at the SEC have been told they need to seek permission from politically appointed leadership before formally launching probes.”

Former SEC division chief Marc Fagel added:

“I was heavily involved in the policy allowing formal order authority to be delegated to the staff, enacted in the wake of the Madoff debacle. So for those whose response to Madoff was “the SEC should move more slowly,” this is great news.”

The change dilutes the powers of recently promoted crypto enforcement lawyers to senior officer positions. Former SEC Chair Gary Gensler strengthened the agency’s enforcement division in December, promoting the litigators before leaving the agency. The promotions could have given them more freedom to continue pursuing crypto firms in court.

Since Gensler’s departure on January 20, Acting SEC Chair Mark Uyeda and Commissioner Hester Peirce have appeared to align with US President Trump’s pro-crypto stance, implementing several policy changes. The latest rule change suggests Acting Chair Uyeda and incoming Chair Paul Atkins may scale back on the SEC’s crypto-enforcement efforts.

SEC Closed Meeting Looms

The Ripple case will take center stage this week, with a closed SEC meeting scheduled for February 6. Closed meetings allow the Commissioners to discuss ongoing litigation, enforcement actions, and potential settlements.

With a 2-1 Republican majority, the SEC may vote on withdrawing its appeal against the Programmatic Sales of XRP ruling. Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal. At least three Commissioners must be present for a quorum.

XRP Price Trends: Ripple Case in the Spotlight

On Monday, February 3, XRP advanced by 4.81%, partially reversing Sunday’s 10.46% tumble to close at $2.5783. Significantly, XRP outperformed the broader market, which gained by 3.23%, taking the total crypto market cap to $3.29 trillion.

It was a choppy start to the week for the crypto market, with XRP tumbling to a session low of $1.7738 before rebounding on US tariff-related news.

While US foreign policy remains a focal point, the SEC’s decision on its appeal will likely dictate XRP’s next move:

• A withdrawal of the appeal could drive XRP past its all-time high of $3.5505.
• If the SEC proceeds with the appeal, XRP could fall below $1.50.

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

Bitcoin Rebounds from $91K on US Tariff Developments

While markets await clarity on the SEC’s appeal plans, bitcoin (BTC) advanced on US tariff-related developments. On Monday, February 3, President Trump announced a temporary pause to 25% tariffs for Mexican and Canadian goods.

Mexico agreed to send 10,000 Mexican troops to the Mexico-US border to stop fentanyl trafficking and illegal immigration. Trump stated he would suspend tariffs for one month to allow negotiators to reach a trade deal.

Meanwhile, Justin Trudeau, the Canadian Prime Minister, announced a $1.3 billion border plan to reinforce its US border and combat fentanyl smuggling.

The abrupt decision to halt tariff plans boosted demand for riskier assets. However, uncertainty remains as China faces 10% tariffs starting February 4 at 05:01 GMT, unless a last-minute deal is reached.

US BTC-spot ETF Market May End Four-Day Inflow Streak

The US BTC-spot ETF market highlighted investor sensitivity to policy shifts. While Mexico and Canada avoided new tariffs, potential levies on China remain a risk factor. According to Farside Investors, flow trends for February 3 included:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $177.6 million.
• ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $50.7 million.
• Bitwise Bitcoin ETF (BITB) and VanEck Bitcoin ETF (HODL) also reported net outflows.

Excluding BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $234.4 million.

Investors also await further updates on a potential US Strategic Bitcoin Reserve (SBR).

Trump Administration Eyes Bitcoin Reserve Plan

On February 3, Tim Kotzman, founder of Bitcoin Treasuries, shared news of David Sacks, Trump’s AI and Crypto Czar, holding a press conference on February 4. The White House schedule indicates the conference will address the administration’s plans to secure the US as a leader in the digital asset ecosystem.

Sacks may give an update on Trump’s crypto Executive Order (EO), which tasked a Presidential Working Group in Digital Asset Markets with evaluating the creation of a strategic national digital assets stockpile. There may also be updates on Senator Cynthia Lummis’ Bitcoin Act.

Senator Cynthia Lummis, Chair of the Senate Banking Subcommittee on Digital Assets, introduced the Bitcoin Act in late 2024. Senator Lummis proposed the US government acquire one million BTC over five years, with a mandatory holding period of 20 years.

Congress, the Federal Reserve, the Treasury Department, and the President must approve a strategic reserve asset.

Bitcoin Price Outlook

On Monday, February 3, BTC advanced by 3.78%, reversing Sunday’s 3.13% loss, closing at $101,580. Significantly, BTC tumbled to a session low of $91,282 before rebounding on US tariff developments.

BTC’s near-term price trend hinges on several factors, including Trump’s crypto and trade policies, the Fed rate path, and US BTC-spot ETF flows.

• Bearish scenario: Rising trade tensions, a hawkish Fed, and stalled SBR discussions could drag BTC below $90k.
• Bullish scenario: De-escalating trade risks, a less aggressive Fed, and increasing political support for an SBR could drive BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments in Focus

Following the tariff-driven rebound, the market focus returns to the SEC’s appeal plans and the potential creation of a US Bitcoin reserve, two factors that could influence institutional adoption and investor sentiment.

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