XRP News Today: XRP Struggles Amid Regulatory Uncertainty; BTC Sub-$100K

Pro-Crypto Agenda Gains Momentum

The Crypto market spotlight remained firmly on Capitol Hill on Thursday, December 12, as the pro-crypto agenda gathered speed.

The US House Committee on Financial Services, led by Chairman Patrick McHenry, named Republican French Hill as the next Chairman.

Chairman Patrick McHenry expressed optimism about the Committee’s future direction, emphasizing regulatory transparency, stating,

“With French Hill at the helm, Republicans will build on our work from this Congress to finally enact a clear regulatory framework and robust consumer protections for the digital asset ecosystem.”

Ripple Chief Legal Officer Stuart Alderoty welcomed the appointment, calling it a step toward achieving regulatory clarity. A transparent regulatory framework that fosters innovation while protecting consumers would be a boon for the US digital asset space.

The SEC Appeal: Will Crenshaw’s Vote Delay Impact Appeal Plans?

The Senate Banking Committee’s delay in voting on SEC Commissioner Carline Crenshaw’s renomination fueled debate about potential ramifications.

Congressman and Democrat Shri Thanedar broke away from the party’s anti-crypto stance on Thursday, saying,

“I am glad to see the Senate delay the vote on the renomination of Commissioner Caroline Crenshaw. Voters just delivered Congress a crypto mandate this November. We should make sure the leaders we nominate support crypto as well.”

Congressman Thanedar’s comments underscored Capitol Hill’s shifting stance toward crypto. Crenshaw, often perceived as anti-crypto, has also faced resistance within the community. Tyler Winklevoss summed it up, saying,

“If Senate Dems renominate Crenshaw to the SEC they will again be making the Democratic Party the Anti-Crypto Party. This cost them the Presidency, the Senate, and the House. I guess they aren’t tired of losing yet.”

The renomination outcome could influence SEC policies. If Crenshaw is not renominated, a Republican-majority SEC may shift strategies. SEC Commissioners could vote to withdraw the appeal against rulings in the Ripple case.

However, it is plausible for the SEC to file its appeal-related opening brief by the January 15 deadline, potentially fueling an XRP sell-off. The agency will have at least two Democratic votes until January 17.

XRP Price Volatility and Regulatory Impact

On Thursday, December 12, XRP declined by 2.37%, reversing a 0.91% from Wednesday, closing at $2.3379. XRP underperformed the broader crypto market, which dipped by 0.30%, taking the total market cap to $3.510 trillion.

Uncertainty surrounding Crenshaw’s renomination vote and whether the SEC will pursue the appeal continues to weigh on XRP demand.

Near-term price trends remain hinged on SEC plans to appeal. XRP could face renewed selling pressure if the SEC pursues the appeal, potentially pulling the token toward $1. Conversely, a withdrawal may drive XRP past its January 2018 all-time high of $3.5505.

A withdrawal would also set the Programmatic Sales of XRP ruling as a pivotal legal precedent for the US crypto market. This precedent may undermine the SEC’s ongoing legal cases against crypto exchanges, including Coinbase (COIN) and Binance.

In July 2023, Judge Analisa Torres ruled that Programmatic Sales of XRP did not satisfy the third prong of the Howey Test. In other words, XRP sales on crypto exchanges do not violate US securities laws.

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Fed Jitters and BTC Price Trends

Bitcoin (BTC) faced selling pressure on Thursday following hotter-than-expected US producer prices. Producer prices increased by 3.0% year-on-year in November, up from 2.6% in October.

As a leading inflation indicator, this data raised doubts about the Federal Reserve’s rate-cut trajectory. Risk assets, including equities and cryptocurrencies, closed lower ahead of the Fed’s final rate decision of the year.

BTC-Spot ETF Market Inflow Streaks and $120k

Despite market jitters, the US BTC-spot ETF market continued drawing investor interest, extending its net inflow streak to eleven sessions. This would be the longest net inflow streak since July’s 12-day run. According to Farside Investors,

• Grayscale Bitcoin mini Trust (BTC) saw net inflows of $110.8 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $61.4 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $30.5 million.

Excluding iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market reported net inflows of $165.9 million on Thursday. Trump’s pledge to include BTC as a US strategic reserve asset (SBR) likely fueled demand for BTC-spot ETFs.

The supply-demand balance could tilt firmly in BTC’s favor if the incoming Trump administration gains approval for an SBR. If enacted, the US government would also become a BTC HODLER, mitigating oversupply risk. The US government has a 198,109 BTC stockpile, equivalent to $19.88 billion.

Bitcoin Price Outlook

On Thursday, December 12, BTC dropped by 0.97%, partially reversing Wednesday’s 4.11% rally, closing at $99,924. BTC revisited the $102k level for the first time since the December 5 breakout to a record high of $103,628.

Near-term BTC price trends will hinge on US BTC-spot ETF market flows, Fed rate cut bets, and US government BTC movements. A large BTC sale by the US government could trigger oversupply fears, potentially pulling prices below $95,000.

Market Outlook for XRP and BTC

Both XRP and Bitcoin face pivotal moments. Regulatory decisions, ETF inflows, and market sentiment will influence the outlook. Stay updated here with our latest insights into crypto markets and regulatory developments.