XRP News Today: SEC vs. Ripple Drama Unfolds Amidst Coinbase’s CFTC Gambit

The Thursday Overview

On Thursday, XRP rallied 4.88%. Following a 4.46% gain on Wednesday, XRP ended the day at $0.6407.

Commodities Futures Trading Commission Muddies the Regulatory Waters

News of Coinbase (COIN) submitting self-certifications to offer trading for Bitcoin Cash (BCH), Dogecoin (DOGE), and Litecoin (LTC) futures contracts added complexity to the US crypto regulatory landscape.

According to the CFTC website, Coinbase submitted the self-certifications on March 7. Significantly, if there are no objections from the CFTC, the door could open to BCH, DOGE, and LTC futures ETFs. The crypto market considers crypto futures ETFs as a prerequisite for crypto-spot ETFs. BCH, DOGE, and LTC may join bitcoin (BTC) in the commodities box.

The classification of BCH, DOGE, and LTC as commodities could affect SEC chances of overturning the Programmatic Sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. The lingering threat of an SEC appeal remains an XRP headwind.

Despite BTC reaching an all-time high in March, XRP remains below the $1.00 handle and well below its ATH of $3.5505. In July 2023, XRP rallied to a 2023 high of $0.9327 before a rapid drop below the $0.50 handle. While the Programmatic Sales ruling was a boon for XRP, the SEC quickly raised the threat of an appeal.

In October 2023, Judge Analisa Torres rejected the SEC motion for interlocutory appeal against the Programmatic Sales ruling. The ruling meant that the SEC must wait until the end of the ongoing SEC v Ripple case before filing an appeal.

Since the attempted appeal in 2023, scrutiny of the SEC has intensified. The intense scrutiny could affect SEC plans to appeal the Programmatic Sales ruling.

Office of Inspector General and Empower Oversight in the Spotlight

US Government watchdog Empower Oversight has increased the scrutiny of the SEC. In May 2022, Empower Oversight alerted the Office of Inspector General (OIG) of possible conflicts of interest within the SEC.

The conflicts relate to former SEC director William Hinman, a 2018 speech declaring BTC and ETH securities, and payments from a former employer, a promoter of Enterprise Ethereum.

Significantly, Empower Oversight alleges Hinman received millions of dollars from former employer Simpson Thacher while guiding the SEC on crypto regulations.

Hinman returned to Simpson Thacher after leaving the SEC. Hinman speech-related documents from the SEC v Ripple case revealed Hinman continued to meet with Simpson Thacher despite warnings from the SEC Ethics Division.

The OIG investigation is nearing its conclusion. Findings of conflicts of interest and bias against Ripple and XRP could potentially compel the SEC to settle the Ripple case.

Since news of the OIG investigation, Empower Oversight refocused on the SEC. On March 14, Empower Oversight submitted a request to the FOIA for records relating to possible ethical violations.

In addition to documents regarding William Hinman, Empower Oversight asked for documents about former SEC Chair Jay Clayton. Clayton filed charges against Ripple on his final day in office before joining One River Asset Management. One River Asset Management is a crypto hedge fund focused on BTC and ETH.

The investigation comes at a difficult time for the SEC, facing another legal battle with Coinbase.

SEC v Coinbase: The Motion to Dismiss Ruling

In August 2023, Coinbase filed a Motion to Dismiss (MTD) the SEC v Coinbase case. Coinbase argued the SEC lacked the statutory authority to regulate crypto exchanges.

Judge Katherine Failla heard oral arguments in January, and investors await a court ruling. If Judge Failla grants the MTD, the SEC may end regulating US crypto exchanges through enforcement.

The filings made on March 7 could support Coinbase’s position in the SEC v Coinbase case. If BCH, DOGE, and LTC fall under the commodities banner, the SEC may be hard-pressed to argue other cryptos are securities.

The outcome of the SEC v Coinbase case may also influence SEC plans to appeal against the Programmatic Sales of XRP ruling. Amicus Curiae attorney and CryptoLaw US founder John E. Deaton believes the SEC would settle the case against Ripple if the Court grants the Coinbase MTD.

XRP Price Action

Daily Chart

XRP remained above the 50-day and 200-day EMAs, affirming the bullish price signals.

An XRP break above the $0.6609 resistance level would support a move toward the $0.7467 resistance level.

SEC-related chatter and SEC v crypto case-related updates need consideration.

Conversely, a fall through the $0.62 handle would give the bears a run at the 50-day EMA. A break below the 50-day EMA could signal a drop to the 200-day EMA and the $0.5740 support level.

Buying pressure could intensify at the $0.5740 support level. The 200-day EMA is confluent with the support level.

The 14-day RSI reading, 52.65, suggests an XRP move to the $0.7467 resistance level before entering overbought territory.

4-Hourly Chart

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

An XRP move to the $0.6609 resistance level could give the bulls a run at the $0.70 handle.

However, a break below the 50-day EMA could signal a fall through the 200-day EMA and the $0.60 handle.

The 4-hourly RSI, with a reading of 56.31, indicates an XRP return to the $0.70 handle before entering overbought territory.