XRP News Today: SEC Silence on Ripple Appeal Fuels Market Uncertainty; BTC Slips!

SEC vs. Ripple: SEC Gains Amicus Support in Appeal

Better Markets Inc. filed an Amicus Brief on January 22, supporting the SEC’s appeal against rulings in the Ripple case. Better Markets argued:

“The XRP tokens sold by Ripple Labs, Inc. (“Ripple”) are investment contract securities regardless of whether investors acquired them directly from Ripple or indirectly on secondary trading platforms. And they are investment contracts regardless of the purchasers’ level of sophistication. In all cases, investors were led to expect profits from the efforts of others, thus satisfying the third prong of the Howey test for investment contracts.”

Better Markets identified several errors in Judge Torres’ ruling on Programmatic Sales of XRP ruling, such as:

• Investment contract status depends on investors acquiring the investment directly from the issuer.
• Retail investors were not sophisticated enough to understand the connection between their expected profits and Ripple’s claimed efforts to find valuable commercial applications for its token.
• The court applied Howey in a way that could materially undermine investor protection purposes of the securities laws.

In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. The SEC filed its appeal-related opening brief on January 15, challenging this ruling.

Notably, Better Markets CEO Dennis M. Kelleher was a member of the Biden-Harris Transition team from September 2020 through January 2021. His recent interviews align with the Biden administration’s anit-crypto stance. The organization supported the SEC’s appeal despite Trump’s election victory, pro-crypto agenda, and Chair Gensler’s departure.

SEC Silent on Ripple Case and Appeal Plans

Better Markets filed the Amicus Brief before the SEC’s highly anticipated closed meeting on January 23. Speculation intensified about the SEC potentially withdrawing its appeal in the Ripple case. However, there were no Ripple case-related updates to boost XRP demand.

Nevertheless, the appeal may have been a talking point as Trump’s nomination for SEC Chair, Paul Atkins, goes through the confirmation process.

Recent reports suggested that acting Chair Mark Uyeda might pause ongoing crypto enforcement cases lacking fraud allegations. In November, the Acting Chair stated,

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

Ripple’s case falls under the non-fraud basket. In August 2024, Judge Torres delivered the Final Judgment, ordering Ripple to pay a $125 million penalty for illegally selling XRP to institutional investors. Significantly, Judge Torres based the penalty on a tier-one civil violation of the US Securities Act, with no allegations of fraud or recklessness.

XRP Price Trends: SEC Appeal Plans in Focus

On Thursday, January 23, XRP declined by 1.87%, reversing Wednesday’s 0.13% gain to close at $3.1187. XRP underperformed the broader crypto market, which edged 0.08% higher, taking the total market cap to $3.51 trillion. The Better Markets filing and the SEC’s silence on the Ripple case fueled market uncertainty, pressuring XRP.

XRP’s near-term trends hinge on the SEC’s appeal strategy. A pause or withdrawal could drive XRP above its all-time high of $3.5505. Conversely, pursuing the appeal could push prices below $2.50.

Explore our expert analysis here on the SEC’s next move and its implications for XRP’s future.

Bitcoin Hovers Amid a Flurry of Crypto-Linked Activity on Capitol Hill

Meanwhile, bitcoin (BTC) had a choppier session on January 23, moving in a $5k range. Regulatory shifts and Capitol Hill activity influenced market sentiment.

SEC Commissioner Hester Peirce announced the rescission of SAB 121, stating,

“Bye, bye SAB 121! It’s not been fun.”

The rescinding could boost BTC and broader crypto market demand. Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

Meanwhile, discussions about the Strategic Bitcoin Reserve (SBR) drew interest. Bloomberg Intelligence ETF Analyst James Seyffart commented on President Trump’s BTC campaign pledge, stating,

“Trump was very particular even as far back as this summer at the Bitcoin conference to say “Stockpile” and not “Reserve”. Time will tell!”

Amicus Curiae attorney John E. Deaton remarked,

“I’ve been saying for sometime: What’s your definition of a SBR? President Trump, via EO, can order that all seized BTC (or any other seized digital asset for that matter) be held in escrow and not sold. If you call that a SBR, then I’m confident we get one. If by SBR, you mean the USG buying BTC, it will take an act of Congress, like the Senator Cynthia Lummis Bill.”

Senator Lummis introduced the Bitcoin Act in late 2024, proposing the US government acquire 1 million BTC over five years, with a mandatory holding period of 20 years.

While an executive order making the US government a BTC HODLER is bullish, an SBR would impact the BTC’s supply-demand balance more.

Bitcoin Price Outlook

On Thursday, January 23, BTC gained 0.28%, partially reversing Wednesday’s 2.21% loss, closing at $104,004. Significantly, BTC closed above the crucial $100k level for the seventh consecutive day. The continued hold above $100k signals investors’ confidence in Congress approving a US SBR.

BTC’s price trends hinge on Trump’s executive orders, SBR developments, and US BTC-spot ETF flows.

US BTC-spot ETF inflows and progress toward a US SBR could drive BTC beyond Monday’s record high of $109,312. Conversely, fading bets on an SBR and BTC-spot ETF outflows could drag BTC toward $95k.

Market Outlook

XRP and BTC face pivotal moments amid shifting regulatory and political landscapes. XRP’s future hinges on the SEC’s appeal strategy under Acting Chair Mark Uyeda, while BTC’s trajectory depends on Trump administration policies and ETF inflows. Regulatory clarity will likely play a decisive role in influencing market sentiment in the weeks ahead.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Read more here.