XRP News Today: Trump’s Pro-Crypto Stance Fails to Boost XRP as SEC Pressure Mounts

XRP Drops Below $0.60 as Crypto Market Retreats

On Saturday, July 27, XRP declined by 1.16%. Reversing a 0.53% gain from Friday, July 26, XRP ended the session at $0.5964. XRP joined the broader market in the red, with the total market cap falling 0.14% to $2.366 trillion.

Trump Speech Offered Brief Relief

US Republican Party front-runner Donald Trump delivered a pro-crypto speech at Bitcoin 2024 on Saturday. Wooing the crypto vote, Trump talked about ending the Democrats’ anti-crypto crusade while warning about Kamala Harris’s anti-crypto stance.

Trump also said,

“On day one, I will fire Gary Gensler”

Ending SEC Chair Gary Gensler’s reign of regulation through enforcement would be a boon for the broader crypto market.

The US Presidential Election Polls

Trump holds a slender lead over Kamala Harris in the latest national polls. The Fabrizio, Lee & Associates/GBAP poll, sponsored by the Wall Street Journal has two polls dated from July 23-25. Trump leads by 2 points in one poll, while Harris leads by 1 point in the other.

Uncertainty about the outcome of the US Presidential Election race limited the influence of Trump’s promises on XRP.

Moreover, the SEC vs. Ripple case verdict will come well before the US Presidential Election.

Settlement Hopes Fade

Hopes of a settlement in the SEC vs. Ripple case faded on Saturday. Speculation about Ripple attending an SEC closed meeting on Thursday, July 25, sent XRP to a July 17 high of $0.6378 before dropping back below $0.60.

The SEC and Ripple have remained silent since the SEC’s closed meeting. Neither party has stated whether discussions about a settlement are taking place.

If Ripple and the SEC fail to settle, the courts will decide the penalty Ripple must pay for breaching US securities laws.

SEC vs. Ripple Court Ruling Imminent

Judge Analisa Torres is deliberating on the SEC vs. Ripple and could deliver her verdict at any time.

In July 2023, Judge Torres ruled that Ripple breached US securities laws by selling unregistered XRP to institutional investors.

Judge Torres must decide whether Ripple continued to breach US securities laws after the SEC filed the charges in December 2020 (post-complaint). In a February 2024 court ruling, Judge Sarah Netburn stated,

“The SEC credibly argues that the District Judge may consider post-complaint conduct when determining whether an injunction is necessary and just.”

SEC vs. Ripple: The Arguments

In March 2024, the SEC filed its remedies-related opening brief, alleging that Ripple continued violating US securities laws after the complaint. The SEC pushed the courts for a $2 billion penalty and an injunction prohibiting XRP sales to US institutional investors.

However, Ripple filed its remedies-related opposition brief in April 2024, defending its post-complaint activity. Ripple argued that post-complaint activity adhered to US securities laws, saying that XRP sales were,

• To accredited investors, exempt from US securities laws or
• Through On-Demand Liquidity (ODL) agreements that prevent profit or loss.

The terms of ODL agreements are important. The SEC cannot argue that investors can expect profits through XRP sales under ODL agreements if the agreements prevent profits or losses. If there is no expectation of profit, it does not pass the third prong of the Howey Test. The Howey Test’s third prong is the expectation of profit through the effort of others.

Ripple proposed a $10 million penalty for breaching US securities laws highlighting that the SEC did not accuse it of recklessness or fraud.

The outcome of the case will influence the appetite for XRP. However, SEC plans to appeal against the Programmatic Sales of XRP ruling may impact XRP demand more.

Will the SEC Appeal?

In August 2023, the SEC filed a Motion for Interlocutory Appeal, requesting permission from the courts to appeal the Programmatic Sales ruling. In October 2023, Judge Torres rejected the Motion for Interlocutory appeal, forcing the SEC to wait until the final verdict before appealing.

Since the October ruling, the SEC expedited the Ripple case by dropping the charges against Ripple co-founder Chris Larsen and CEO Brad Garlinghouse.

The SEC may appeal the Programmatic Sales of XRP ruling when considering its Motion for Interlocutory Appeal.

However, a settlement would end the SEC’s plans for an appeal. Pro-crypto lawyer Bill Morgan had this to say about settlements,

“Settlements generally end matters in dispute including appeal rights in current proceedings.”

Morgan does not think that the SEC and Ripple will settle. He recently said,

“This is unlikely to happen but if it does it is a compromise not a big win. It means both parties give up something.”

Possible XRP Price Trajectories

XRP could retake the $1.00 handle if the SEC and Ripple settle. On July 13, 2023, XRP reacted to the Programmatic Sales of XRP ruling, surging from $0.4696 to $0.9327.

However, XRP dropped below $0.40 in August 2023 over fear of the SEC overturning the ruling on appeal.

Investors should remain vigilant as hopes for a settlement linger. Stay updated with our latest news and analysis to manage exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

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

An XRP return to $0.60 could signal a move to the July 17 high of $0.6378. A breakout from $0.6378 could give the bulls a run at the $0.6609 resistance level.

SEC vs. Ripple case-related updates and SEC activity require consideration.

Conversely, an XRP drop below the $0.5739 supported level could give the bears a run at the 200-day and 50-day EMAs.

With a 14-day RSI reading of 61.06, XRP could return to the July 17 high of $0.6378 before entering overbought territory.