XRP News Today: XRP Rises as Gensler Faces Backlash Over SEC Brief; BTC at $99K

SEC vs. Ripple: Chair Gensler Appeals XRP Ruling

XRP hit a session high of $3.4010 on Thursday, January 16, as investors reacted to the SEC’s opening brief filing. The opening brief challenged the Programmatic Sales of XRP ruling, arguing,

“The district court erred in concluding that as a matter of law retail investors did not reasonably expect profits based on Ripple’s public representations that it would increase XRP’s price.”

Regarding secondary sales, the SEC stated:

“A requirement that retail investors know that they are purchasing from the issuer or its affiliates undermines the federal securities laws’ protections for offers and sales that issuers make indirectly through intermediaries.”

Pro-crypto lawyer Jeremy Hogan criticized the SEC’s brief, describing it as “lackluster” and overly focused on reiterating the trial court’s rulings. Amicus Curiae attorney John E. Deaton highlighted the appeal’s complexities, noting that if the SEC wins at the Second Circuit, the case will return to Judge Torres to address additional Howey test prongs.

Deaton also predicted that a Supreme Court review could favor Ripple, potentially setting a precedent limiting the SEC’s jurisdiction.

SEC Could Withdraw Its Appeal Before Ripple Files a Reply Brief

This week, reports of the SEC potentially dismissing or pausing certain non-fraud crypto cases suggested that the SEC’s appeal could end before Ripple files its appeal-related reply brief.

Fox Business journalist Eleanor Terrett commented on the SEC’s likely maneuvers after SEC Chair Gary Gensler leaves on January 20, saying,

“It‘s likely the acting chair will begin reviewing the ongoing non-fraud cases currently in litigation pretty quickly and, after that, possibly request stays of some of them. […] But either Uyeda or Peirce (likely Uyeda will become acting chair) has the power to get the ball rolling on this while Atkins is going through confirmation.”

XRP’s price action reflected optimism regarding an SEC appeal withdrawal as there were no fraudulent allegations in the Ripple case.

XRP Price Trends: Appeal Withdrawal Speculation Fuels Breakout

On Thursday, January 16, XRP gained 3.21%, following Wednesday’s 17.82% rally to close at $3.2447. XRP outperformed the broader crypto market, which declined by 0.63% to a total market cap of $3.43 trillion.

XRP’s price trajectory will hinge on sentiment toward the SEC’s withdrawal plans. Speculation about the SEC withdrawing its appeal could drive XRP above its January 2018 all-time high of $3.5505.

Conversely, suggestions of the SEC pursuing its appeal after Chair Gensler’s departure could trigger an XRP reversal.

Beyond the Ripple case, crypto reserve developments also require consideration.

The Kobeissi Letter, an industry-leading commentary on global capital markets, reported:

“Donald Trump is expected to propose forming an America-first crypto reserve that would ‘prioritize digital coins founded in the US,’ per NY Post.”

These would include XRP.

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

BTC Faces Selling Pressure Amid Strong US Economic Data

Meanwhile, bitcoin (BTC) faced selling pressure as US economic indicators continued signaling a robust economy. Retail sales increased by 0.4% in December after a 0.8% rise in November. Initial jobless claims rose from 203k (week ending January 4) to 217k (January 11). Despite the increase, claims remained low by historical levels, suggesting a resilient US labor market.

A tight labor market and rising consumer spending trends could fuel demand-driven inflation, potentially delaying Fed rate cuts. Higher borrowing costs may dampen the appetite for riskier assets.

BTC slid to a post-data low of $97,086 before briefly revisiting the $100k level.

US BTC-Spot ETF Market Flows Send Bullish Signals

On January 15, the US BTC-spot ETF market reported net inflows of $755.1 million, breaking a four-day outflow streak. The US BTC-spot ETF market could see a second day of inflows on January 16, bolstering BTC demand. According to Farside Investors, ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $155.4 million.

Excluding flow data for BlackRock’s (BLK) iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported net inflows of $98.2 million.

Hopes for a less hawkish Fed rate path, following December’s US CPI Report, support BTC demand. Additionally, US Strategic Bitcoin Reserve (SBR) developments could act as another tailwind for BTC. Speculation about Trump repealing President Biden’s veto of the SEC’s SAB 121 regulation vote could also fuel BTC demand.

Staff Accounting Bulletin 121 (SAB 121) is an SEC requirement for companies, including banks, to hold crypto assets on their balance sheets even if they hold the cryptos under customer custody. The regulation makes it expensive for banks to hold crypto under custody for clients, limiting crypto services and BTC demand.

Bitcoin Price Outlook

On Thursday, January 16, BTC dipped by 0.25%, partially reversing Wednesday’s 3.61% rally, closing at $99,780.

BTC’s price trajectory hinges on US BTC-spot ETF flow trends and Strategic Bitcoin Reserve (SBR) developments.

BTC-spot ETF inflows and favorable US SBR developments could drive BTC toward its record high of $108,231. Conversely, weak bipartisan support for an SBR and BTC-spot ETF outflows could drag BTC toward $95k.

As Trump’s inauguration looms, traders should monitor the news wires for crypto-related chatter.

Market Outlook: A Critical Juncture for XRP and BTC

Both XRP and BTC face critical junctures as regulatory and market developments unfold. XRP’s outlook depends on the SEC’s appeal strategy, while BTC’s trajectory hinges on ETF flows and SBR-related decisions. Broader shifts in crypto regulation, such as changes to SEC policies, will likely influence market sentiment in the weeks ahead.

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