XRP News Today: SEC vs. Ripple – The Final Countdown to January 15; BTC at $94k

SEC vs. Ripple: Eve of the Appeal

All eyes will be on the SEC vs. Ripple case on the eve of the SEC’s January 15 opening brief filing deadline. Notably, the SEC has remained silent about whether it will proceed with the appeal or withdraw it, a decision potentially clouded by Chair Gary Gensler’s imminent departure.

While the uncertainty exposes XRP to the potential for heightened volatility, expectations for a shift in SEC oversight of digital assets remain a tailwind.

Significant changes in SEC leadership are imminent. Democrat SEC Commissioner Jaime Lizarraga will leave the SEC on January 17, with Chair Gensler stepping down on January 20.

Former SEC Commissioner Paul Atkins will become SEC Chair, with the Trump administration needing to nominate replacements for Commissioners Lizarraga and Caroline Crenshaw. An SEC focused on working with Congress to introduce a digital asset framework that fosters innovation while protecting investors could be a boon for the crypto market.

On Monday, January 13, Ripple Chief Technology Officer David Schwartz highlighted the SEC’s enforcement shortcomings, saying,

“So the SEC’s haphazard enforcement strategy of targeting entities that are trying to follow the law does not give potential defendants the notice that due process requires. That is especially true because the field is novel. The agency has offered no meaningful guidance on which crypto assets it views as securities. The DAO Report gives guidance only about the clearest crypto assets: tokens that look just like stocks. But what about stablecoins, utility tokens, or even Bitcoin and Ether?”

Schwartz concluded:

“Existing rules do not fit blockchain technology, but the SEC refuses to recognize this. It’s official silence and contradictory unofficial signals breed uncertainty. Crypto issuers and exchanges are left to cross their fingers and pray that the agency does not fault them.”

SEC Faces Judicial Fallout as Chair Gensler’s Term Ends

The SEC v Coinbase (COIN) case took an unwelcome turn for the SEC, with the Third Circuit Court ruling in Coinbase’s favor. Coinbase Chief Legal Officer Paul Grewal shared the decision, stating,

“We just won our petition for a writ of mandamus at the Third Circuit. Rebuking SEC for its order denying our rulemaking petition, the Court held that the “SEC’s order was conclusory and insufficiently reasoned, and thus arbitrary and capricious, we grant Coinbase’s petition in part and remand to the SEC for a more complete explanation.”

Judge Bibas surmised,

“We properly remand the SEC to explain itself; it should not give yet another poor explanation in an already-long iine of them. […] But sporadically enforcing ill-fitting rules against crypto companies that are trying to follow the law goes way beyond fighting fraud. It targets a whole industry and risks de facto banning it. On remand, the SEC must grapple with that problem.”

Ripple Chief Legal Officer Stuart Alderoty shared excerpts from a court ruling, saying,

“Huge congratulations to Paul Grewal and Coinbase for their win today. In Gensler’s final days, his anti-crypto crusade is imploding, and a federal appeals court has laid bare what the industry has said for years: his selective enforcement of securities laws was a (not so) covert attempt to ban the industry outright. Shameful.”

The latest court ruling could pressure the SEC to reconsider its appeal in the Ripple case. Amicus Curiae attorney John E. Deaton recently assessed the upside for an SEC appeal, saying,

“Hence, my point: appealing the Ripple ruling is a fool’s errand and I think Paul Atkins will see it that way.”

XRP Price Trends: Legal Battle Drives Sentiment

On Monday, January 13, XRP advanced by 0.80%, partially reversing Sunday’s 2.81% loss, closing at $2.5245. Significantly, XRP outperformed the broader crypto market, which declined by 0.91% to a total market cap of $3.20 trillion.

XRP’s price trajectory hinges on the Ripple case. XRP could drop below $2 if the SEC files its opening brief, convincingly challenging the Programmatic Sale of XRP ruling. Conversely, XRP could break above its 2018 record high of $3.5505 if the agency withdraws its appeal.

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

Bitcoin Dips Below $90K, Rebounds on Policy Rumors

Meanwhile, bitcoin (BTC) faced a choppy January 13 session. Significantly, BTC tumbled below $90k for the first time since November 18, when it was on a bull run toward the record high $108,231.

The pullback was brief, with dip buyers supporting a rebound amid speculation of pro-crypto executive orders from the Trump administration.

On Monday, BTC recovered its losses as rumors of Trump planning day-one crypto executive orders circulated. Trump could boost BTC access by overturning Biden’s veto of the SEC’s SAB 121 regulation vote.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, especially banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. President Joe Biden vetoed a bipartisan vote against the regulation.

Monday’s choppy session came ahead of Trump’s inauguration and a potential US Strategic Bitcoin Reserve (SBR).

Supply vs. demand remains the key driver, potentially muting the effects of a more hawkish Fed rate path and higher borrowing costs.

On Monday, US BTC-spot ETF issuer Bitwise highlighted the US demand potential, stating,

“We polled advisors across the country, and only 35% said they are able to buy crypto in client accounts today. Worth noting: Advisors manage roughly half of all wealth in America. There’s still a lot of room to run.”

Last week, Bitwise surveyed over 400 US financial advisors. Notably

“99% of advisors who currently have an allocation to crypto in client accounts plan to either maintain or increase that exposure in 2025.”

Bitcoin Price Outlook

On Monday, January 13, BTC dipped by 0.10%, reversing Sunday’s 0.05% to close at $94,493.

BTC’s price trends remain hinged on US economic data, BTC-spot ETF market flows, and Strategic Bitcoin Reserve (SBR) developments. Hotter-than-expected US inflation numbers on January 15 could sink bets on a first half (H1) of 2025 Fed rate cut. A more hawkish Fed rate path may fuel spot ETF outflows, potentially impacting BTC demand.

However, progress toward a US SBR could counter the influence of a hawkish Fed rate path on sentiment, potentially supporting new highs.

Meanwhile, BTC could break below the $90,742 support level if an SBR faced bipartisan resistance.

Market Outlook: XRP and BTC at a Crossroads

XRP and BTC face pivotal moments as regulatory and macroeconomic factors influence their paths. XRP’s trajectory hinges on the SEC’s appeal strategy, while BTC’s price depends on ETF flows and developments related to the proposed US SBR. Broader regulatory policies and monetary trends will continue influencing sentiment across the crypto market.

Stay ahead of the curve with our in-depth analysis of the SEC’s next move and its impact on XRP and Bitcoin. Explore expert insights and real-time updates to navigate these pivotal market moments effectively. Read more here.