XRP News Today: SEC vs. Ripple Case Update, Implications for XRP-Spot ETFs

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The Sunday Overview

On Sunday (May 26), XRP declined by 2.53%. Reversing a 1.08% gain from Saturday (May 25), XRP ended the week up 3.75% to $0.5282.

SEC vs. Crypto: Court Rulings Loom

There were no SEC vs. Ripple case-related updates to influence buyer demand for XRP on Sunday.

Nevertheless, investors were likely mindful of looming court rulings that could adversely affect the US crypto market.

In the ongoing SEC vs. Ripple case, the penalty for breaching US securities laws is unlikely to affect the US crypto market. However, SEC plans to appeal against the Programmatic Sales of XRP ruling could create market tension. If the US appellate courts overturn the Programmatic Sales of XRP ruling, the SEC would have a stronger footing to regulate through enforcement.

Ripple expects a court ruling in the coming months, meaning the SEC could file an appeal before the US Presidential Election.

Beyond the Ripple case, the SEC v Coinbase (COIN) case could have more significant ramifications for the broader crypto market. Investors await a court ruling on the Coinbase Motion for Interlocutory Appeal.

If Judge Katherine Failla grants the Motion for Interlocutory Appeal, the courts will reconsider the Coinbase Motion to Dismiss (MTD). Coinbase filed the MTD in October 2023, arguing that the SEC lacked the statutory authority to regulate crypto exchanges.

A Coinbase win against the SEC could end SEC plans to appeal against the Programmatic Sales of XRP ruling.

Other prominent US crypto platforms facing legal challenges include Kraken and Robinhood Markets Inc. (HOOD).

The influence of the US courts on the crypto market is significant. Crypto victories against the SEC could end the debate on whether cryptos are securities or commodities. Moreover, clarity could yield a fruitful crypto-spot ETF market.

On Friday (May 24), Ripple CEO Brad Garlinghouse shared a post on X (formerly Twitter) about an XRP-spot ETF market. Standard Chartered Bank expects the SEC approval of ETH-spot ETFs to pave the way to XRP-spot ETFs in 2025.

Before the SEC decision on the ETH-spot ETFs, FX Empire discussed the possible implications of an ETH-spot ETF market on the broader crypto market. XRP-spot ETFs have been a talking point since 2023.

In November, false reports of BlackRock (BLK) filing an XRP-spot ETF application caused XRP to reach a high of $0.7501 before retracing below the $0.60 level. Court rulings that dictate XRP is a commodity could expedite an XRP-spot ETF market.

XRP Price Action

XRPUSD 270524 Weekly Chart

Daily Chart

XRP sat below the 50-day and 200-day EMAs, sending bearish price signals.

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.

Crypto-spot ETF news and SEC vs. crypto case-related updates need consideration.

Conversely, an XRP break below the trend lines would bring the $0.48 handle into play.

The 14-day RSI reading, 50.68, indicates an XRP move to the $0.60 handle before entering overbought territory.

XRPUSD 270524 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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