XRP News Today: XRP Decline Deepens After SEC Appeal Delay and Tether Probe

XRP Slides Below $0.50 Amid Broader Crypto Market Rout

On Friday, October 25, XRP slid by 5.66%, reversing a 1.20% gain from the previous session, closing at $0.5017. XRP underperformed the broader crypto market, which declined by 3.03%, taking the total market cap to $2.212 trillion.

Reports of the FBI investigating Tether (USDT) impacted demand for crypto assets.

Wall Street Journal Reports Tether Investigation; XRP Reacts

On Friday, October 25, the Wall Street Journal published an article titled, ‘US Probes Firm Behind World’s Most Traded Cryptocurrency.’

According to the WSJ, the US federal government is investigating Tether for potential sanction violations and breaches of anti-money laundering regulations. XRP and the broader crypto market reacted to the news, with XRP tumbling to a Friday session low of $0.4864.

Markets remain sensitive to stablecoin stability. In May 2022, Terraform Labs’ algo stablecoin TerraUSD (UST) lost its peg to the US dollar, sending the total crypto market cap below $1 billion and XRP to sub-$0.30 levels.

Ripple Files Form C in Cross-Appeal Move

As investors considered the reported probe into Tether, SEC v Ripple case-related news also became a focal point.

On Thursday, October 24, Ripple filed its Form C, marking the first step in its cross-appeal against rulings from the SEC vs. Ripple case. Ripple Chief Legal Officer Stuart Alderoty discussed the filing, stating,

“The case is not about whether XRP, in and of itself, is a security. XRP is uniquely situated as having clarity (alongside BTC) in not being classified as a security. The SEC is not challenging that ruling which stands as the law of the land.”

Alderoty also highlighted that the SEC cannot offer new evidence or force Ripple to provide more.

Ripple’s Form C filing sparked debate within the legal community, focusing on institutional sales and fair notice. Pro-crypto lawyer Bill Morgan commented on the filing, stating,

“Ripple’s cross-appeal covers essential ingredients issue, institutional sales, fair notice defense, and injunction being insufficiently clear and specific.”

In the Final Judgment, Judge Analisa Torres granted the SEC’s request for injunction relief, ordering Ripple to comply with US securities laws. The SEC called for an injunction prohibiting XRP sales to US institutional investors. Ripple is likely seeking clarity on the court granting the SEC’s request for an injunction that did not prohibit compliant XRP sales to institutional investors.

Pro-crypto lawyer Bill Morgan remarked on the injunction order, saying,

“I was also surprised by the form of the injunction and how broad it read when the final orders were made. Is this typical? I cannot recall an Australian court ever giving an injunction to the effect of obeying the law.”

SEC Appeal Delay Draws Criticism

Meanwhile, the SEC’s approach to the appeal process drew investor criticism.

On Thursday, October 24, the SEC requested a 90-day extension to file its appeal-related opening brief, pushing the deadline to January 15, 2025.

Morgan commented on the SEC’s extension request, noting,

“It was so urgent 15 months ago they wanted an interlocutory appeal but now the SEC files everything on the last day possible.”

In August 2023, the SEC filed a Motion for Interlocutory Appeal, requesting permission to appeal the Programmatic Sales of XRP ruling.

If Judge Torres granted the Motion, the Ripple case would pause to the appeal to conclude before the case could proceed. However, Judge Torres rejected the Motion, forcing the SEC to wait until the Final Judgment before filing any appeals.

Considering the SEC’s extension request, the appeal process could conclude in 2026, aligning with pro-crypto lawyer Fred Rispoli’s projections. Uncertainty about the appeal could continue pegging XRP below the crucial $0.55 handle.

Outlook

Investors should track SEC appeal-related developments and US Presidential Election news, which could significantly influence XRP price trends. Stay informed with our latest news and analysis to better manage your exposures to XRP and the broader crypto market.

XRP Price Action

Daily Chart

XRP remains well below the 50-day and 200-day EMAs, confirming bearish price trends. Additionally, the 50-day EMA crossed through the 200-day EMA, sending further bearish signals.

A break above $0.5350 could signal a move toward the 200-day and 50-day EMAs. Furthermore, a breakout from the 50-day EMA may allow the bulls to test the $0.5739 resistance level.

US Presidential Election news, Ripple case-related news, and SEC vs. crypto case-related updates require consideration.

Conversely, a drop below the $0.50 level may bring the trend lines into play.

With a 14-day RSI reading of 36.40, XRP could fall to the trend lines before entering oversold territory.