5 Things to Know in Crypto Today – SEC v Ripple Ruling to Test the SEC

Key Insights:

• XRP revisited $0.50 on Thursday following the latest SEC v Ripple Court ruling that went Ripple’s way.
• Metaverse activity continues, with Blackrock (BLK) launching a metaverse-related ETF.
• Fed fear could reignite later today, with US inflation numbers due alongside a string of FOMC member speeches.

The Securities and Exchange Commission Loses Key Battle Against Ripple

On Thursday, the ongoing SEC v Ripple case took an unexpected turn in favor of Ripple and XRP.

This week, Investors were awaiting a swift end to the case following the Motions for Summary Judgment filings. The filings suggested a possible settlement, with the Defendants filing the Motion for Summary Judgment without a Court ruling on an SEC objection.

However, Judge Torres overruled an SEC objection on Thursday. The decision could have a material bearing on the case. Judge Torres overruled the SEC’s objection to the Court denying the SEC motion to protect the William Hinman speech-related documents under the attorney-client privilege.

The latest ruling is a big blow for the SEC and its chances of overseeing the digital asset space. The SEC had battled to shield the Hinman documents under the attorney-client privilege, with more than seven motions contesting previous Court decisions.

However, Judge Torres has ordered the SEC to turn over all the Hinman speech-related documents.

XRP rallied by 8.49% on Thursday as investors responded to the news. The broader crypto market reaction to the ruling was also positive. The total crypto market cap reversed losses to the end day at $911.4 billion, a $7.4 billion rise on the day.

Big Names Bridge Virtual and Real Worlds to Keep Web3 in the Limelight

The United Arab Emirates continued its drive into the virtual space this week. On Wednesday, the Dubai Ministry of Economy unveiled its headquarters in the metaverse. Dubai and Abu Dhabi are not newcomers to the metaverse, with both setting up shop in the virtual space earlier in the year.

While the UAE continues migrating to the metaverse, other big names have also hit the news this week.

On Thursday, Warner Music Group (WMG) announced a partnership with OpenSea to provide artists with more Web3 opportunities. In the announcement, WMG said the collaboration would,

“Provide a platform for select WMG artists to build and extend their fan communities in Web3.”

Blackrock (BLK) is not wanting to be left behind as more mainstream players go virtual. Bloomberg reported that the asset manager is launching a new exchange-traded fund (ETF) targeting metaverse-related companies.

ETHW Breaks Out on News of Binance Ethereum PoW Mining Pool Launch

On Thursday, Ethereum (Proof-of-Work) (ETHW) rallied by 11.83% to end the day at $12.004. News of Binance launching an ETHW Mining Pool drove ETHW demand in a choppy session.

According to the announcement,

“All users of the ETHW Pool will enjoy zero pool fees for ETHW mining.”

However, Binance added,

“In order to protect Binance users, ETHW will go through the same strict listing review process as Binance does for any other coin/token. Supporting ETHW on Binance Pool does not guarantee the listing of ETHW. Binance does not guarantee any listings as per our internal policy.”

Fed Fear Remains a Clear and Present Danger for the Crypto Market

This morning, the crypto market cap is down $3.33 billion to $908.07 billion. After a bullish Thursday session, caution has hit the broader crypto market.

Later today, US economic indicators and Fed chatter will test investor resilience. US inflation, personal spending, and consumer sentiment will be in the spotlight.

While revisions to consumer sentiment figures and personal spending will draw interest, the Core PCE Price Index will be the market focal point. Fed fear stemming from the current inflation environment could reignite should inflationary pressures build further.

Economists forecast the Core PCE Price Index to rise by 4.7% year-over-year, up from 4.6% in July.

Bitcoin and Its Carbon Footprint Was Under Scrutiny Once More

A research paper from the University of New Mexico compared Bitcoin’s (BTC) carbon footprint to that of digital crude and not gold.

The paper also noted that,

“Extreme changes would be required to make BTC sustainable (eg., on the renewable mix). POW-based cryptocurrencies are on an unsustainable path. If the industry doesn’t shift its production path away from POW or move towards POS, then this class of digitally scarce goods may need to be regulated and delay will likely lead to increasing global climate damages.”

BTC had a muted reaction to the latest anti-POW paper. This morning, BTC was down 0.55% to $19,482.