XRP News Today: SEC vs. Ripple Lawsuit Deepens with Consensys Legal Battle

The Friday Overview

On Friday (April 26), XRP gained 0.10%. Partially reversing a 0.28% loss from Thursday (April 25), XRP ended the session at $0.5262.

SEC vs. Ripple: Consensys Joined the Battle Against the SEC

There were no SEC vs. Ripple case-related updates for investors to consider before the weekend. Investors must await an SEC opposition brief to the Ripple Motion to Strike and an SEC reply brief to the Ripple opposition brief.

The SEC must file its opposition brief in response to the Ripple Motion to Strike by Monday, April 29. Furthermore, the SEC must file its reply brief to contest the Ripple opposition brief by May 6.

The filings will influence the SEC vs. Ripple case, with the SEC arguing for a $2 billion penalty and injunction. Nevertheless, the outcome will unlikely affect SEC plans to appeal against the Programmatic Sales of XRP ruling.

However, other crypto cases could impact SEC plans to overturn the Programmatic Sales of XRP ruling. These include the SEC v Coinbase and the newly filed Consensys vs. SEC case.

On Friday (April 26), Consensys announced it filed a lawsuit against the US Securities and Exchange Commission (SEC).

In a series of posts on X (formerly Twitter), Consensys gave two reasons for filing the lawsuit, posting,

• “The SEC should not be allowed to arbitrarily expand its jurisdiction to include regulating the future of the internet by wrongly labeling ETH a security.”
• “The SEC’s reckless approach is bringing chaos to developers, market participants, institutions, and nations, who are building or already managing critical systems running on Ethereum.”

A Consensys victory over the SEC could impact SEC plans to appeal the Programmatic Sales of XRP ruling. The SEC has clearly stated ETH is a security. A court ruling to the contrary may also impact the SEC regulation through enforcement mantra.

Empower Oversight, Consensys, and Former SEC Chair Jay Clayton

Consensys is well-known within the XRP community. In March 2024, US government watchdog Empower Oversight sent a letter to FOIA requesting communication records from the SEC. Empower Oversight cited possible ethical violations within the SEC and highlighted concerns about former SEC Chair Jay Clayton.

Empower Oversight noted that Jay Clayton joined crypto hedge fund One River Asset Management after departing the SEC. One River Asset Management was a crypto hedge fund targeting BTC and ETH. More significantly, Clayton became an advisor to Electric Capital while acting as SEC Chair. Electric Capital was an investor in Consensys, tying SEC Chair Clayton to Ethereum.

The Consensys vs. SEC case could bring out the skeletons from the SEC closet, which could influence SEC plans vis-à-vis the Programmatic Sales of XRP ruling.

In 2018, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities. The contentious issue with the Hinman speech was his connection with Simpson Thacher, part of a group that promotes Enterprise Ethereum.

After leaving the SEC, Hinman returned to Simpson Thacher. While at the SEC, Hinman continued meeting with Simpson Thacher despite warnings from the SEC ethics division.

Empower Oversight claims Jay Clayton publicly affirmed the Hinman statement that ETH is not a security.

XRP Price Action

Daily Chart

XRP sat comfortably below the 50-day and 200-day EMAs, sending bearish price signals.

An XRP break above the bottom and top trend lines would support a move toward the 50-day EMA. A breakout from the 50-day would give bulls a run at the 200-day EMA and the $0.5739 resistance level. Selling pressure could intensify at the $0.5739 resistance level. The 200-day EMA is confluent with the resistance level.

SEC vs. crypto case-related news needs investor consideration.

Conversely, an XRP drop below the $0.50 handle would bring the $0.48 handle into play.

The 14-day RSI reading, 41.90, indicates an XRP fall through the $0.50 handle before entering oversold territory.

4-Hourly Chart

On the 4-hourly, XRP hovered below the 50-day and 200-day EMAs, confirming the bearish price trends.

A breakout from the bottom trend line would bring the top trend line and the $0.5361 resistance level into play. Selling pressure may increase at the top trend line. The 50-day EMA is confluent with the top trend line. A break above the 50-day EMA would support a move to the $0.5361 resistance level.

However, a drop below the $0.50 handle would bring the $0.48 handle into play.

The 4-hourly RSI, with a reading of 42.30, suggests an XRP break below the $0.50 handle before entering oversold territory.