XRP News Today: XRP Soars Amid SEC Chair Resignation Chatter as BTC Dips

Rumors of SEC Chair Gensler’s Resignation Fuel XRP Surge

On Thursday, November 14, SEC Chair Gary Gensler was under the crypto spotlight, reportedly hinting at his possible resignation. At the Practicing Law Institute, SEC Chair Gary Gensler delivered a speech covering various asset classes, including crypto.

Gensler highlighted his predecessor Jay Clayton’s anti-crypto approach. Gensler noted Clayton had initiated around 80 legal actions against crypto firms, including Ripple. Maintaining his view that all crypto, excluding BTC, are securities, the SEC Chair wrapped up his speech by stating:

“I’ve been proud to serve with my colleagues at the SEC who, day in and day out, work to protect American families on the highways of finance.”

Investors reacted positively to the speech, with XRP surging to a 2024 high of $0.8478, its highest level since July 2023, shortly after the Programmatic Sales of XRP ruling.

On July 13, 2023, Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test. XRP rallied to a high of $0.9327 in response to the Programmatic Sales ruling.

SEC Chair Gensler’s Potential Step Down and Appeal Strategy

SEC Chair Gary Gensler’s resignation could increase speculation about the SEC withdrawing its appeal in the Ripple case. The SEC must file its appeal-related opening brief by January 20, 2025, offering a window to withdraw its appeals before the deadline and Inauguration Day (January 20).

However, Gensler reaffirmed his view that all crypto, except BTC, are securities, suggesting the SEC may continue to challenge the Programmatic Sales of XRP ruling.

Importantly, Chair Gensler’s resignation would open the door to a new SEC Chair. Nevertheless, he could remain an agency Commissioner, retain a vote, and possibly target crypto firms with litigation.

XRP Price Action

On Thursday, November 14, XRP surged 12.07%, reversing a 2% drop from the previous session, closing at $0.7737.

SEC vs. Ripple case-related news and SEC activity require consideration on Friday, November 15. Further speculation about a Gensler resignation and SEC plans to withdraw its Ripple appeal could drive XRP to $1. Conversely, suggestions that the SEC will pursue its appeal despite Trump’s recent election victory could fuel an XRP reversal.

US Economic Data and Powell Sink Fed Rate Cut Bets, Testing BTC Demand

On Thursday, US labor market figures and producer price data influenced investor bets on a 25-basis point December Fed rate cut. Producer prices increased by 2.4% year-on-year in October, up from 1.9% in September. As a leading inflation indicator, the upswing signaled a potential pickup in demand-driven inflationary pressures, dampening bets on a December Fed rate cut.

Meanwhile, US labor market data also reduced bets on a December Fed rate cut. Initial jobless claims dropped from 221k (week ending November 2) to 217k (week ending November 9). A tighter labor market may drive up wages, increasing consumer spending and inflation.

Late in the Thursday session, Fed Chair Jerome Powell added to the negative mood, warning the Fed should be cautious regarding policy until it has greater certainty. The comments aligned with falling bets on a December Fed rate cut.

Consequently, the CME FedWatch Tool showed the chances of a 25-basis point December Fed rate cut slide from 82.5% on November 13 to 48.3% on November 14, weighing on BTC demand.

US BTC-Spot ETF Market Inflow Streak at Risk

On Wednesday, November 13, the US BTC-spot ETF market reported net inflows of $510.1 million. Demand remained robust following the US CPI Report that raised expectations for a December Fed rate cut. However, Thursday’s producer price and jobless claims numbers sank bets on a December Fed rate cut, adversely impacting the US BTC-spot ETF market. According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $179.2 million on Wednesday. (Previous day: +$186.1 million).
• ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $161.7 million. (Previous day: $14.5 million).
• Bitwise Bitcoin ETF (BITB) had net outflows of $113.9 million. (Previous day: +$12.3 million).

Excluding flow data for iShares Bitcoin Trust (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), the US BTC-spot ETF market saw $527.2 million of net outflows. Significantly, the US BTC-spot ETF market could end its six-day inflow streak if BlackRock’s (BLK) iShares Bitcoin Trust (IBIT) sees modest inflows.

Thursday’s flow trends highlighted the significant influence of Fed monetary policy on BTC demand.

ETF Store President Nate Geraci remarked on the six-day inflow streak, stating,

“Another $500+mil into spot btc ETFs today… 6 straight days of inflows totaling $4.7bil. Quickly approaching $30bil net inflows since January launch. Simply ridiculous.”

Bitcoin (BTC) Price Action

On Thursday, November 14, BTC declined by 3.13%, reversing a 3.37% gain from the Wednesday session to close at $87,325. Significantly, BTC fell for only the second time since the US presidential election.

Upcoming US retail sales, due on Friday, November 15, could also influence sentiment toward the Fed rate path. Higher-than-expected retail sales could sink bets on a December rate cut and dampen BTC demand. Conversely, weaker-than-expected retail sales could refuel speculation about a December rate cut, potentially driving BTC through $95,000.

Stay tuned for the latest on how market shifts and regulatory developments impact crypto assets.