XRP News Today: XRP Rallies 6.9% Amid SEC Appeal Withdrawal; BTC Sideways

SEC Withdraws Appeal Against the Blockchain Association and CFAT

On Wednesday, February 19, the newly revamped SEC and Crypto Task Force continued addressing crypto-related enforcement cases.

Fox Business journalist Eleanor Terrett reported on the latest US court developments, stating:

“The SEC under Mark Uyeda has voluntarily dismissed its appeal of the lawsuit challenging the SEC’s expansion of its dealer rule brought last April by Blockchain Association and Crypto Freedom Alliance of Texas. The rule would have expanded the definition of a dealer to include high frequency trading firms and certain crypto hedge funds among others. It was seen by the industry as an indirect way of regulating crypto trading firms.”

The Blockchain Association reacted to the SEC’s appeal withdrawal:

“Today, under new leadership at the agency, the SEC voluntarily dismissed its appeal, marking a total victory in the case not only for us, but for the innovators, entrepreneurs, and builders across America.”

As background, the Blockchain Association (BA) and Crypto Freedom Alliance of Texas (CFAT) filed a lawsuit against the SEC in April 2024, challenging the agency’s broad application of the Dealer Rule. In November, the court ruled in favor of BA and CFAT. However, the SEC under Gary Gensler appealed the decision.

SEC Prioritizes Crypto Cases With Imminent Deadlines

The appeal withdrawal follows recent court filings in SEC enforcement cases against Binance, Coinbase (COIN), and Lejilex. The filings requested stays, arguing that extensions would allow the SEC’s Crypto Task Force to develop a crypto regulatory framework, potentially facilitating resolutions.

These developments align with Acting Chair Ueyda’s stance on crypto enforcement. In November, Acting Chair Uyeda criticized the SEC’s regulatory approach, saying:

“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.”

However, investors hoping for the SEC to withdraw its appeal of the Programmatic Sales of XRP ruling in the Ripple case may be disappointed. The next deadline in the Ripple case is April 16, when Ripple must file its appeal-related reply brief. With no filings expected until April, the SEC appears to prioritize crypto cases with tighter deadlines.

Eleanor Terrett noted:

“I’m told by multiple legal sources that the SEC has been prioritizing cases with imminent court deadlines.”

Earlier this month, we considered the possibility of the SEC waiting for Paul Atkins’ confirmation before formally withdrawing from non-fraud crypto cases.

Current deadlines range from March 14 until April 16, allowing time for Atkins’s confirmation and the Crypto Task Force to finalize its crypto regulatory framework. However, the appeal withdrawal in the BA and CFAT case suggests the agency could withdraw the Ripple appeal at any time.

SEC Acknowledges XRP-Spot ETF Filings, Boosting Market Sentiment

Meanwhile, the SEC’s acknowledgment of 19b-4 applications for XRP-spot ETFs fueled optimism in the market. On February 19, the SEC acknowledged 19b-4 applications from Bitwise Invest, Canary Funds, CoinShares, and WisdomTree, raising hopes for an XRP-spot ETF market.

XRP Price Trends: SEC Activity in Focus

On Wednesday, February 19, XRP rallied 6.90%, reversing Tuesday’s 3.75% loss, closing at $2.7379. XRP outperformed the broader crypto market, which gained 1.30%, taking the total market cap to $3.14 trillion.

Speculation about the SEC potentially withdrawing its Ripple case appeal and progress on XRP-spot ETFs boosted XRP demand.

Looking ahead, activity in the Ripple case and US XRP-spot ETF market-related news remain critical drivers. Key Price Scenarios:

• Bullish Case: If the SEC withdraws its appeal, XRP could break past its all-time high of $3.5505.
• ETF Catalyst: An XRP-spot ETF approval could push prices toward $5, driven by institutional inflows.
• Bearish Case: A continued SEC appeal and an ETF rejection could send XRP below $1.50.

Click here to find out why analysts believe XRP could skyrocket—or crash—based on the SEC’s decision.

Bitcoin Reacts to Fed Meeting Minutes

Amid a flurry of crypto-related court filings, bitcoin (BTC) remained in focus. On February 19, the Fed released the meeting minutes, reinforcing its wait-and-see stance on monetary policy. The Minutes revealed the Fed is monitoring the potential effects of US tariffs, labor market trends, and inflation before adjusting its outlook.

Despite no surprises in the Minutes, BTC tracked the Nasdaq Composite Index, briefly dropping to a low of $95,332 before retaking the $96K handle. The Nasdaq Composite Index ended the Wednesday session up 0.07%.

US BTC-Spot ETF Market Faces Outflows Amid Fed Uncertainty

Despite BTC’s recovery, the US BTC-spot ETF market faced a second consecutive session of outflows. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $48.4 million.
• ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $8.7 million.
• VanEck Bitcoin ETF (HODL) and Coinshares Valkyrie Bitcoin Fund (BRRR) also reported net outflows.

Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported total net outflows of $64.1 million, following $60.7 million in outflows on February 18.

Concerns about a global trade war fueling US tariff-driven inflation, potentially leading to a more hawkish Fed, remained a market headwind. However, hopes for a US Strategic Bitcoin Reserve (SBR) continued to offer support.

Could the US Establish a Strategic Bitcoin Reserve?

The potential introduction of a US Strategic Bitcoin Reserve (SBR) could significantly impact Bitcoin’s supply-demand balance and fuel institutional adoption.

Amicus Curiae attorney John E. Deaton recently commented:

“If the US Government (USG) passes Senator Lummis’ Bill and begins buying BTC, it will no doubt cause other nations to follow suit, just like with gold. It could literally create Nation State FOMO, and if that occurs, $1M per BTC happens a lot faster than people think.”

Bitcoin Price Outlook

On February 19, BTC gained 0.79%, reversing a 0.14% drop on Tuesday, February 18, closing at $96,387. While snapping a three-day losing streak, BTC fell short of the $100k level for twelve consecutive sessions.

Key BTC Price Scenarios:

• Bearish: Upbeat US data, rising tariff tensions, and government resistance to a US SBR could push BTC toward $90,000.
• Bullish: Weak US services sector data, easing trade tensions, and progress on an SBR could drive BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments Remain Key

Investors should continue monitoring the following key drivers:

1. The SEC’s Ripple case appeal decision
2. US tariff policies and their inflationary impact
3. US economic data and Fed policy guidance.
4. Updates on the Strategic Bitcoin Reserve (SBR).
5. BTC-spot ETF market flows and institutional adoption.

Crucially, will the SEC withdraw its Ripple case appeal, and the US government push for an SBR? Keep an eye out for our updates and the latest insights here.