XRP News: Coinbase Victory Could End SEC Plans to Appeal XRP Ruling
Key Insights:
š¹ XRP gained 2.10% on Monday, ending the session at $0.5351.
š¹ BTC-spot ETF-related updates fueled buyer demand for cryptos.
š¹ On Tuesday, investors must consider court rulings from the ongoing SEC cases against Ripple and Coinbase.
The Monday Overview
On Monday, XRP gained 2.10%. Reversing a 1.26% loss from Sunday, XRP ended the session at $0.5351.
BTC-Spot ETF-Related Updates Fuel XRP Demand
BTC-spot ETF market updates drove buyer demand for BTC and the broader crypto market. Downward trends in Grayscale Bitcoin Trust (BTC) outflows contributed to the gains.
However, XRP continued to sit below the $0.60 handle, with the SEC v Ripple case leaving XRP trailing BTC and the broader crypto market.
Investors await the court ruling on the SEC Motion to Compel. The SEC filed the Motion to Compel on January 11, requesting 2022/23 financial statements and post-complaint contracts governing XRP sales to institutional investors. Ripple and the SEC are progressing toward the February 12 deadline to complete remedies-related discovery.
There were no SEC v Ripple case-related updates since Judge Analisa Torres granted the Ripple Motion to file a Sur-Reply letter.
While investors await a court ruling, the SEC v Coinbase case could have more significance.
SEC v Coinbase: Motion to Dismiss Ruling Pivotal for the Crypto Market
Investors also await the court ruling on the Coinbase (COIN) motion to dismiss (MTD). Coinbase filed a Motion to Dismiss in August, arguing the SEC lacks the statutory authority to regulate crypto exchanges.
If Judge Katherine Failla grants the Motion to Dismiss, the ruling could force the SEC to end its reign of regulation by enforcement. Judge Failla heard oral arguments for and against the Motion to Dismiss on January 17.
On Monday, Amicus Curiae attorney John E. Deaton considered the SEC v Coinbase case, saying,
āIn 2021, Gary Gensler testified that exchanges like Coinbase and Kraken fell outside the jurisdictional purview of the SEC and CFTC. In fact, in April 2021, the SEC made a determination that it was in the publicās best interest to grant acceleration for a Coinbase IPO. Two years later, acting as a political operative, Gensler changed his mind and declared Coinbaseās entire business model as illegal and in violation of U.S. securities laws.ā
As background, the SEC filed charges against Coinbase in June 2023 for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.
The outcome of the SEC v Coinbase case could dictate the direction of the SEC v Ripple case. A Coinbase victory could end SEC plans to appeal the Programmatic Sales of XRP ruling. In July 2023, Judge Torres ruled that programmatic sales of XRP do not satisfy the third prong of the Howey Test. A favorable end to the SEC v Ripple case would be a boon for Ripple and XRP.
https://www.fxempire.com/forecasts/article/xrp-news-coinbase-victory-could-end-sec-plans-to-appeal-xrp-ruling-1405907