XRP News Today: SEC vs. Dragonchain Filing Sparks Ripple Debate; BTC at $97K

SEC vs. Dragonchain: Ripple Appeal and Broader Implications

On Friday, amicus curiae attorney John E. Deaton shared a court filing in the SEC vs. Dragonchain case, criticizing the agency’s aggressive tactics, stating,

“Certain lawyers at the SEC are continuing their bully tactics in non-fraud crypto cases against American entrepreneurs. Dragonchain originated out of Disney (DIS). You don’t get more American than that. Gary Gensler and his cronies won’t do what’s right, so we fight.”

In 2022, the SEC sued Dragonchain for unregistered crypto asset security offerings. The court filing highlighted the SEC’s intentions to pursue the case despite Chair Gensler’s imminent departure and likely shift in the agency’s approach to litigating crypto firms.

The court filing also outlined Dragonchain’s argument for a court stay, stating,

“There are fast-approaching changes to SEC leadership and enforcement priorities, as has been widely reported in the press (the nominee for the SEC Commissioner position has indicated that they intend to move to stay ongoing enforcement litigation that does not involve investor fraud, investor loss, or risk of imminent harm. This case meets those criteria.”

The court’s decision could set a precedent for Ripple, Coinbase (COIN), Binance, and other crypto firms embroiled in legal battles with the SEC.

Former SEC Chief Critiques Gensler’s Legacy

Former SEC Office of Internet Enforcement Chief John Reed Stark criticized Chair Gensler and the agency’s tactics, stating,

“SEC Chair Gary Gensler is clearly attempting to pilot the SEC Enforcement Division from the grave. Since Donald Trump’s election, Gensler has promoted five Senior Officers within the SEC Enforcement Division at SEC Headquarters. Four of these SEC enforcement staff cut their teeth as SEC crypto-enforcement superstars (where they were spectacularly successful).”

Stark speculated that incoming SEC leadership, under a pro-crypto agenda, may curtail ongoing investigations and litigation. He warned, however, that seasoned enforcement staff might face dilemmas in navigating these policy shifts.

The former SEC Chief concluded,

“While I have not been particularly inclined towards deep state conspiracy theories, the Stark reality is that Gensler’s actions have brought such a plot to the forefront and put it in plain view. And it just really ticks me off.”

Chair Gensler’s actions suggest the SEC will file the appeal-related opening brief in the Ripple case. The deadline is January 15. Incoming SEC Chair Paul Atkins will enforce the incoming Trump administration’s pro-crypto agenda. However, internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

The rules underscore the significance of Democrat Commissioner Caroline Crenshaw’s failed renomination vote. Democrat Commissioner Jaime Lizarraga will leave the agency on January 17, making way for Republicans. If the SEC files its appeal-related opening brief, the agency could vote to withdraw it later.

XRP Price Trends: Awaiting Key SEC Decisions

On Friday, December 20, XRP gained 1.83%, partially reversing Thursday’s 3.10% loss to close at $2.2786. XRP slid to a session low of $1.9591 before rebounding.

XRP outperformed the broader crypto market, which advanced by 0.99%. The crypto market faced intense selling pressure this week, with the Fed’s rate cut and more hawkish economic projections leaving XRP and the broader market in negative territory.

Despite sentiment toward the Fed’s rate path outlook, Ripple’s legal battles remain a key driver for XRP.

If the agency withdraws its appeal, XRP could target January 2018’s all-time high of $3.5505. However, XRP could face initial selling pressure if the SEC files its opening brief by January 15, potentially sending the token toward $1.50.

Explore exclusive XRP price predictions here.

US Personal Income and Outlays Report Drives BTC Rebound

On Friday, bitcoin (BTC) also faced volatility, sliding $92,074 on pre-holiday profit-taking. Market sentiment toward the more hawkish Fed rate path fueled the sell-off. However, US economic data, on Friday fueled a broad-based crypto rebound with BTC retaking the $98k handle.

The crucial Core PCE Price Index increased by 2.8% year-on-year in November, below a consensus of a 2.9% increase, mirroring October’s rise. The softer-than-expected inflation data and weaker-than-forecast personal income and spending figures boosted demand for riskier assets.

US BTC-Spot ETF Market Outflow Impact on BTC Demand

On Thursday, December 19, the US BTC-spot ETF market reported net outflows of $671.9 million, the largest since launching on January 11. Investor sentiment toward the Fed’s Fed Fund Rate projections ended a fifteen-day inflow streak.

The US BTC-spot ETF market remained under pressure on Friday. According to Farside Investors:

• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $87.0 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $71.9 million.
• Grayscale Bitcoin Trust (BTC) reported net outflows of $57.4 million.

Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market registered total net outflows of $204.3 million, weighing on BTC demand early in the Saturday session.

The US BTC-spot ETF market’s flow trends are crucial for BTC’s supply-demand dynamics. Despite the potential for a second day of net outflows, BTC-spot ETF inflows have impressed. BTC-spot ETF net inflows currently stand at $529.9 million for the week, potentially extending the inflow streak to three weeks.

ETF Store President Nate Geraci emphasized the significance of the BTC and ETH-spot ETF market on Friday, saying,

“One year ago, there were *no* spot crypto ETFs… A year later, this is now a *$135bil* category & we have combined spot btc & eth ETFs coming to market. And that’s without a crypto-friendly SEC. Currently filings for sol, xrp, ltc, & hbar ETFs. 2025 could get wild.”

Bitcoin Price Outlook

On Friday, December 20, BTC gained 0.43%, partially reversing Thursday’s 2.4% loss, closing at $98,124.

Near-term BTC price trends will depend on sentiment toward the Fed rate path, US BTC-spot ETF market flow trends, Strategic Bitcoin Reserve (SBR) related news, and US government BTC sales.

A substantial BTC sale by the US government could retrigger oversupply fears, potentially dragging BTC toward $90,000. Conversely, further progress toward an SBR may drive BTC toward $100,000.

Market Outlook for XRP and BTC

Both XRP and BTC are at critical junctures. XRP’s future hinges on the SEC’s next move, while BTC remains sensitive to ETF flows and macroeconomic developments. Stay updated with our latest market analysis and expert insights here.