Ripple vs. SEC Case Nears Critical Point; BTC Revisits $95K

Key Points:

SEC may stay Ripple appeal, impacting XRP and setting crucial legal precedents for the US crypto market's future.

SEC urged to renounce the Hinman speech, challenging its reliance in crypto cases like Ripple's legal battle.

BTC slips to $95K as ETF outflows and Fed data weigh on risk sentiment; US GDP supports hawkish Fed outlook.

Potential SEC Scrutiny of Digital Asset Cases Amid the Ripple Appeal

On Thursday, December 19, Fox Business journalist Eleanor Terrett shared the details of a meeting between staffers for SEC Commissioners Hester Peirce and Mark Uyeda and the Digital Chamber. The Digital Chamber reportedly set priorities for the SEC divisions by considering the incoming administration’s pro-crypto agenda.

Key proposals included:

Formally stating that the Hinman speech is not SEC guidance and is not to be relied on.

Initiate an immediate review of all existing digital asset-related investigations, Wells notices, and in-process litigation cases.

Seek stays for cases that do not include fraud, investor loss, or risk of imminent harm.

These priorities could impact the Ripple case, with the SEC’s appeal-related opening brief due by January 15, 2025.

In August 2024, Judge Analisa Torres ordered Ripple to pay a $125 million penalty for violating US securities laws. The penalty amount fell well short of the SEC’s demand for a punitive $2 billion penalty. The court noted that investors did not suffer pecuniary harm because of the violations, nor did Ripple commit fraud.

A stay on the Ripple case may prompt the SEC to withdraw its appeal, setting the Programmatic Sales of XRP ruling as a crucial legal precedent for the US digital asset market.

An end to the Ripple case would be a boon for XRP, plagued with uncertainty about the SEC’s appeal plans.

Hinman Speech and Ripple: A Contentious History

Renouncing Hinman’s 2018 speech would be icing on the cake for Ripple. In an infamous speech, former SEC Director of the Division of Corporation Finance William Hinman said that Bitcoin (BTC) and Ethereum (ETH) are not securities.

The contentious issue with the speech related to Hinman’s connection with the legal firm Simpson Thacher, which is part of a group promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

XRP Price Trends: Awaiting Key SEC Decisions

On Thursday, December 19, XRP declined by 3.10%, following Wednesday’s Fed-fueled 10.07% tumble, closing at $2.2376. XRP followed the broader market’s 3.81% drop, bringing the crypto market cap to $3.280 trillion.

US labor market and GDP data signaled a robust US economy, supporting the Fed’s more hawkish rate path. Expectations of a higher-for-longer Fed rate path weighed on risk appetite.

While US economic data and the Fed’s monetary policy will influence XRP price trends, the Ripple case remains the key driver.

If the agency withdraws its appeal, XRP could target January 2018’s all-time high of $3.5505. However, XRP could face initial selling pressure if the SEC files its opening brief by January 15, potentially dragging the token below $2.00.