XRP News Today: Will OIG Findings Force SEC to Withdraw Ripple Appeal? BTC at $103K

OIG Investigation into SEC Crypto Conflicts of Interest

In December 2024, the Office of Inspector General (OIG) concluded its investigation into alleged crypto conflicts of interest within the SEC, presenting its findings to senior management. Former SEC Chair Gary Gensler withheld the findings, which could harm the agency’s appeal in the Ripple case.

In 2022, Empower Oversight (EO), a US government whistleblower, reported potential conflicts of interest to the OIG. EO alleged former SEC officials, including Bill Hinman, acted biasedly against Ripple and XRP.

In 2018, Bill Hinman, a former SEC Director of the Division of Corporation Finance, declared bitcoin (BTC) and Ethereum (ETH) not securities. EO claimed that Hinman received millions of dollars from his former employer, legal firm Simpson Thacher while working with the SEC on crypto regulations. Simpson Thacher is part of a group that promotes Enterprise Ethereum. Hinman returned to Simpson Thacher after leaving the SEC.

The OIG’s findings could prove significant in the SEC’s appeal. Court documents in the Ripple case revealed that Hinman continued engaging with Simpson Thacher employees despite SEC Ethics Division warnings. The SEC had made six failed attempts to shield the Hinman speech-related documents under attorney-client privilege before being ordered to share the documents with Ripple. The OIG’s findings could now weigh heavily on the SEC’s appeal.

CryptoLaw Pushes Congress for OIG Report Transparency

On Wednesday, January 22, CryptoLaw, founded by Amicus Curiae attorney John E. Deaton, remarked on the OIG investigation, saying,

“Here is what Congress needs to do: it needs to demand that the SEC release its IG report on Hinman’s ethics and conflicts of interest while regulating crypto at the agency. That would be the dawn of a ethical age at the SEC.”

CryptoLaw also targeted Hinman, saying,

“Does Hinman think we forget so easily that he brought destruction to the crypto space, not clarity? That he ignored the SEC General Counsel’s warnings not to confuse the markets? That he picked winners and losers in the crypto space?”

The SEC may be hard-pushed to pursue its appeal against the Programmatic Sales of XRP ruling if the OIG found that the SEC was biased against Ripple and XRP. The agency’s primary objective is to protect investors by maintaining fair, orderly, and efficient markets while facilitating capital formation.

In 2018, XRP was the second largest crypto by market cap, larger than ETH, before the SEC lawsuit. Evidence of crypto conflicts of interest within the agency could bring into question the SEC’s justifications to target Ripple and the grounds for an appeal.

On Thursday, January 23, Mark Uyeda will attend the first SEC closed meeting since being appointed acting SEC Chair. The outcome of the investigation and the agency’s plans regarding the Ripple appeal could be a key talking point.

In November, Acting Chair Uyeda called for an end to crypto enforcement cases without allegations of fraud, stating,

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

The OIG’s findings and the absence of fraud in Ripple’s violations of the US Securities Act could give the agency the grounds to withdraw its appeal.

XRP Price Trends Hinged on SEC Appeal Strategy

On Wednesday, January 22, XRP edged 0.13% higher, following Tuesday’s 2.33% gain to close at $3.1780. XRP outperformed the broader crypto market, which declined by 1.65% to a total market cap of $3.51 trillion. Optimism about the SEC potentially withdrawing its appeal likely contributed to the divergence.

XRP’s near-term trends hinge on the SEC’s appeal strategy. A pause or withdrawal could drive XRP above its all-time high of $3.5505. Conversely, pursuing the appeal could push prices below $2.50.

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

Bitcoin Under Pressure as Trump Stays Silent on Strategic Reserve Asset

Meanwhile, bitcoin (BTC) hit the reverse on Wednesday amid a lack of crypto-related US Presidential executive orders. Despite a wave of executive orders, President Trump remained silent on making BTC a national priority and repealing Joe Biden’s veto of the bipartisan vote to withdraw the SEC’s Staff Accounting Bulletin 121 (SAB 121).

BTC climbed to a record high of $109,312 on Inauguration Day in anticipation of becoming a US Strategic Bitcoin Reserve (SBR).

Anthony Scaramucci recently said the Trump administration could imminently purchase 500,000 BTC, highlighting that Senate Banking Committee Chair Tim Scott and US Treasury Secretary Scott Bessent want it to happen. However, the Trump administration will need Congress, the Federal Reserve, US Treasury Department to approve BTC as a strategic reserve asset.

US BTC-spot ETF market flows reflected investor optimism and disappointment in recent sessions. On Tuesday, January 21, the US BTC-spot ETF market registered net inflows of $802.6 million, extending its inflow streak to four sessions. However, the US BTC-spot ETF market faces a potential shift in sentiment, potentially pressing BTC.

According to Farside Investors, there were outflows of $95.6 million on Wednesday, January 22, excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and several others.

Bitcoin Price Outlook

On Wednesday, January 22, BTC dropped by 2.21%, partially reversing Tuesday’s 3.56% rally to close at $103,716. Significantly, BTC closed above the crucial $100k level for the sixth consecutive day. The hold above $100k suggests investors remain optimistic about a US SBR. However, selling pressure could build if investors become skeptical about BTC becoming a strategic reserve asset.

BTC’s price trends hinge on Trump’s executive orders, SBR developments, and US BTC-spot ETF flows.

An executive order withdrawing SAB 121, US BTC-spot ETF inflows, and progress toward a US SBR could drive BTC beyond Monday’s record high of $109,312. Conversely, fading bets on an SBR and BTC-spot ETF outflows could drag BTC toward $95k.

Market Outlook

XRP and BTC stand at critical junctures amid evolving legal and regulatory landscapes. XRP’s future hinges on the SEC’s appeal decisions under Acting Chair Mark Uyeda. However, Bitcoin’s trajectory depends on Trump administration policies and BTC-spot ETF flows. Broader regulatory clarity may significantly shape market sentiment in the weeks ahead.

Stay updated with our expert analysis of these developments and their implications for crypto markets. Read more here.