XRP News Today: Ripple Navigates SEC Challenges as US Lawmakers Push FIT21 Bill

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The Wednesday Overview

On Wednesday (May 22), XRP fell by 2.05%. Reversing a 0.02% gain from Tuesday (May 21), XRP ended the session at $0.5262.

SEC vs. Ripple Uncertainty and Hawkish FOMC Meeting Minutes

Uncertainty about the ongoing SEC vs. Ripple case contributed to the Wednesday losses. Investors await a court ruling on the omnibus sealing motions. According to the court schedule, the SEC and Ripple must file redacted versions of all documents within 14 days of the court ruling.

The upcoming court ruling on the sealing motions may not directly affect the decision regarding the penalties Ripple faces for breaching US securities laws. However, sensitive information relating to Ripple’s financial statements and counterparty agreements could affect Ripple’s business relationships and XRP adoption.

On Monday, the SEC filed its response to a Ripple Motion to Seal. Notably, the SEC rebutted Ripple’s arguments about releasing sensitive information, including financial statements, saying that the documents constitute judicial documents.

The SEC vs. Ripple case outcome will influence buyer appetite for XRP. However, SEC plans to appeal the Programmatic Sales of XRP ruling remain an XRP headwind.

Amidst increasing scrutiny of the SEC vs. Ripple case, US lawmakers remained under the spotlight.

US House of Representatives Support the FIT21 Bill

On Wednesday, the US House of Representatives approved the FIT21 Bill with a 279 to 136 majority vote. FIT21 would provide a digital asset regulatory framework, driving innovation while protecting US consumers.

US House Committee on Financial Services Chairman Patrick McHenry had this to say about FIT21,

“It is past time for Congress to provide clear rules of the road for the digital asset ecosystem. The American people deserve legislation to ensure consumer protection and allow innovation to thrive in this country.”

Republican Senator Cynthia Lummis celebrated the bipartisan vote in favor of FIT21, saying,

“The passage of FIT 21 proves there is strong, bipartisan support in Congress for creating a regulatory framework for the crypto industry. Congratulations to Patrick McHenry, French Hill. Dusty Johnson, Warren Davidson, Tom Emmer, and Glenn Thompson.”

While the vote was good news for the US digital asset space, more hawkish-than-expected FOMC Meeting Minutes impacted buyer demand for riskier assets. The FOMC Meeting Minutes showed willingness among FOMC members to hike interest rates to return US inflation to the 2% target.

The crypto market reaction to the FOMC Meeting Minutes suggests likely XRP sensitivity to US economic data on Thursday (May 23). US initial jobless claims and Services PMI will warrant investor attention. Better-than-expected numbers could fuel speculation about a Fed rate hike. Furthermore, SEC activity and crypto case-related news also need consideration.

XRP Price Action

XRPUSD 230524 Weekly Chart

Daily Chart

XRP remained below the 50-day and 200-day EMAs, confirming the bearish price trends.

An XRP break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level.

SEC vs. Ripple case-related updates and US economic indicators need consideration.

Conversely, an XRP drop below the trend lines could signal a fall toward the $0.48 handle.

The 14-day RSI reading, 51.32, indicates an XRP break above the $0.5739 resistance level before entering overbought territory.

XRPUSD 230524 Daily Chart

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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