XRP News Today: Will the SEC Drop the Ripple Appeal After Closed Meeting? BTC at $84K

SEC Closed Meeting; Will the Agency Drop the Ripple Appeal?

The next closed SEC meeting is set for Thursday, February 27. Closed meetings allow SEC Commissioners to discuss enforcement actions against crypto and non-crypto-related firms.

According to the Sunshine Act Notice, the Commissioners will review:

• Institution and settlement of injunctive actions;
• Institution and settlement of administrative proceedings;
• Resolution of litigation claims;
• Other matters relating to examinations and enforcement proceedings.

Since former SEC Chair Gary Gensler’s departure, notable figures, including lead crypto litigator Jorge Tenreiro, have been absent from these meetings. Tenreiro, who played a key role in the Ripple and Coinbase cases, was reassigned to the IT department.

The SEC dismissed its lawsuit against Coinbase (COIN) on Friday, February 21, following last week’s closed meeting. The dismissal has fueled speculation about the SEC potentially dropping its appeal in the Ripple case.

The SEC filed its appeal-related opening brief on January 15, challenging the programmatic sales of XRP ruling. In July 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

Former SEC Enforcer Sees an Appeal Withdrawal as Inevitable

Former SEC Office of Internet Enforcement Chief John Reed Stark remarked on the SEC’s recent crypto-related activity:

“So This is How the SEC Dies. The Rapid-Fire Demolition of the SEC Crypto-Enforcement Program Continues. SEC Investigations of Uniswap & OpenSea Officially Closed. Both Firms Had Received Wells Notices Under SEC Chair Gensler. Dropping of the SEC’s Ripple Appeal Next Up for Sure.

When asked whether the SEC would treat the Ripple case differently because of the $125 million fine, Stark stated:

“In my opinion, the SEC will never again file a pleading in a court case advocating that any digital asset is a security. That is the reason why a withdrawal of the SEC ‘s Ripple appeal is inevitable. I also believe that the SEC will win the Ripple appeal, and such a victory would be wholly inconsistent with its current crypto–ethos.”

Can Acting Chair Uyeda Push for an Appeal Withdrawal?

The upcoming closed meeting could see the three remaining Commissioners, two of whom are crypto-friendly Republicans, vote on whether to withdraw the appeal. Some speculate that Acting Chair Mark Uyeda and Commissioner Hester Peirce may await Paul Atkins’ confirmation. However, SEC rules allow for a vote.

Under internal SEC rules, an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal. At least three Commissioners must be present for a quorum.

XRP Price Trends: Can an Appeal Withdrawal Reverse the Downtrend?

On Wednesday, February 26, XRP slid by 5.39%, reversing Tuesday’s 1.85% gain to close at $2.1970. XRP tracked the broader crypto market, which dropped by 4.42% to a total market cap of $2.75 trillion.

External factors, including US tariffs, sentiment toward the US economy, and Fed policy, have contributed to the recent stumble. However, XRP’s price trajectory may hinge on two key catalysts:

• SEC Appeal Strategy: If the SEC drops its appeal, XRP could rally beyond its all-time high of $3.5505. Continued legal uncertainty, however, may send prices below $1.50.
• XRP-Spot ETF Developments: If an XRP-spot ETF were approved, it could attract institutional inflows and potentially push XRP toward $5.

Read expert analysis on what could drive XRP to new highs here.

Trump, Bitcoin, and the Market Slump – What’s Next?

Trump’s election victory initially fueled bitcoin (BTC) demand on expectations of a pro-crypto shift. However, stalled progress on the Bitcoin Act has dampened expectations for a US Strategic BTC Reserve (SBR).

Senator Cynthia Lummis introduced the bill shortly after Trump’s election win, proposing the US government purchase one million BTC over five years, with a mandatory 20-year holding period.

Price projections were bullish, supporting BTC’s surge to the January 20 all-time high of $109,312. Two price predictions resonated:

• Bitwise Chief Investment Officer Matt Hougan projected a BTC break above $200k by December 2025.
• Amicus Curiae attorney John E. Deaton speculated BTC could reach $1 million if the US government passes the Bitcoin Act, triggering a nation-state FOMO.

The absence of US government BTC demand has left external market forces to dictate price trends. US tariff developments have been particularly influential. Rising tariffs could drive import prices higher, fueling inflation and potentially delaying Fed rate cuts.

Bitcoin Reacts to Trump’s Tariff Announcement

On Wednesday, February 26, President Trump announced plans for 25% tariffs on EU goods, pressuring BTC and the broader crypto market. The Kobeissi Letter noted:

“The trade war is back: Minutes after President Trump announced 25% tariffs on the EU, the S&P 500 erased $500+ BILLION of market cap. Meanwhile, Bitcoin just broke below $84,000 for the first time since November 11th.”

Following Trump’s tariff discussions regarding Canada, China, and Mexico, BTC has declined from $105,993 to a February 26 low of $82,083. Rising tariff-related inflation concerns have pushed one-year inflation expectations up from 2.6% in November 2024 to 4.3% in February 2025.

Gold vs. Bitcoin: A Diverging Trend

Notably, while BTC tumbled to its lowest level since November 11, gold has surged to record highs, nearing $3,000. This divergence could further impact hopes for a national SBR, as policymakers may favor gold over crypto.

BTC-Spot ETFs Face Heavy Outflows

Meanwhile, US BTC-spot ETFs continue to register sizable outflows. On February 25, issuers reported net outflows of $1,138.9 million, the largest single-day withdrawal since launching in January 2024. The US BTC-spot ETF market also faced a seven-day outflow streak on February 26 in what has been a brutal month.

According to Farside Investors, the US BTC-spot ETF market has seen net outflows of $2,606.8 million in February, the largest monthly outflow since launch. February’s flow trends contrast starkly with November’s inflows of $6,680.9 million. This shift has disrupted BTC’s supply-demand balance, amplifying downward pressure.

Bitcoin Price Outlook: Key Scenarios

On February 26, BTC slid by 5.10%, following Tuesday’s 3.24% loss, closing at $84,129. Amid the gloomy sentiment, investors should consider these key drivers:

• Bearish Scenario: Tariff risks, stronger US economic data, Fed hawkishness, and resistance to a US Strategic Bitcoin Reserve (SBR) could send BTC below $80,000.
• Bullish Scenario: Easing trade tensions, dovish Fed signals, and SBR progress could push BTC toward its all-time high of $109,312.

Market Outlook: Key Catalysts to Watch

Regulatory and macroeconomic developments will influence the market’s next move. Investors should closely monitor:

1. The SEC’s decision on its Ripple appeal.
2. US tariff policies and inflation trends.
3. US economic data and Fed policy shifts.
4. Progress on a US Strategic Bitcoin Reserve.
5. BTC-spot ETF developments and institutional activity.

If the SEC drops its Ripple appeal, it could trigger a broader crypto rally. Meanwhile, uncertainty around a US Bitcoin Reserve remains a wildcard for institutional adoption.

Stay updated with our latest insights here.