XRP News: US Lawmakers Challenge SEC Amidst New XRP Lawsuit Dramas

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Key Insights:

  • XRP gained 0.44% on Friday, closing the session at $0.5649.
  • The SEC, William Hinman, and possible conflicts of interest became a focal point.
  • On Saturday, SEC v crypto, US lawmakers, and SEC activity warrant investor attention.

The Friday Overview

On Friday, XRP gained 0.44%. Following a 4.57% rally on Thursday, XRP ended the session at $0.5649. Significantly, XRP extended the winning streak to three sessions.

SEC v Ripple: Remedies-Related Discovery Ends February 19

There was no SEC v Ripple case-related news to influence the buyer appetite for XRP on Friday. The ongoing case is reaching a crucial stage, with remedies-related discovery concluding on Monday, February 19.

After discovery, the SEC and Ripple will argue for and against a punitive penalty for breaching Section 5 of the US Securities Act. In July, Judge Analisa Torres ruled XRP to be a security in sales to institutional investors. The SEC and Ripple must file remedy briefs by March 13 and April 12, respectively. As per the court briefing schedule, the SEC must file a reply brief by April 19.

After the filings, Judge Torres will deliberate and rule on the penalty Ripple must pay for breaching Section 5 of the US Securities Act.

While the SEC and Ripple progress toward a conclusion, Bill Hinman returned to the spotlight.

Empower Oversight, the SEC, and William Hinman

On Thursday, Empower Oversight announced the Office of Inspector General (OIG) is in the final stages of investigating reported crypto conflicts of interest within the SEC.

Empower Oversight referred the conflicts of interest issues to the OIG in 2022. Empower Oversight is a non-profit government watchdog. The conflicts of interest involve former SEC Director William Hinman.

In 2021, Empower Oversight filed a lawsuit against the SEC, alleging former SEC officials were biased against XRP and Ripple Labs. While working at the SEC to guide crypto regulations, Oversight claimed William Hinman received millions of dollars from his former employer, Simpson Thacher.

Significantly, Simpson Thacher is part of a group promoting Enterprise Ethereum. In an infamous 2018 speech, Hinman said bitcoin (BTC) and ethereum (ETH) were not securities.

William Hinman, the former SEC Director of the Division of Corporation Finance, returned to Simpson Thacher after leaving the SEC.

Amicus Curiae attorney, and founder of CryptoLaw US, had this to say about the announcement,

“We must have our ethics’ rules followed, and when they’re not, they must be enforced. America is at its greatest when we have a level playing field and we allow the best technologies and innovations to compete fairly. And we must ALWAYS stand up against gross government overreach.”

The outcome of the investigation could influence SEC plans to appeal against the Programmatic Sales of XRP ruling.

William Hinman and SEC Attempts to Shield Hinman Speech-Related Documents

During the SEC v Ripple case, the SEC made more than six attempts to shield the William Hinman speech-related documents under the attorney-client privilege. Notably, the SEC attempted to seal three categories of information, including internal SEC documents reflecting debate and deliberation by SEC officials.

Despite rulings against each SEC attempt to shield the documents, the court eventually ordered the release of the documents. The documents revealed Hinman continued meeting with Simpson Thacher despite warnings from the SEC ethics team.

The latest announcement comes at a difficult time for SEC Chair Gary Gensler and the SEC.

In January 2024, the SEC filed a Motion to Dismiss the charges against Debt Box. The Motion to Dismiss came in response to a December court order. The court order required the SEC to show why the court should not sanction the SEC for making false and misleading misrepresentations to the court.

US lawmakers responded to the court order and Motion to Dismiss. Five US Senators co-signed a letter to SEC Chair Gensler in February. Significantly, the Senators threatened scrutiny of its other enforcement cases.

If the OIG identifies conflicts of interest within the SEC, the SEC may have to end plans to appeal against the Programmatic Sales of XRP ruling. Such an outcome would be a boon for XRP and the broader crypto market.

XRP Price Action

XRPUSD 170224 Weekly Chart

Daily Chart

XRP sat above the 50-day and 200-day EMAs, affirming bullish price signals.

An XRP move through the Friday high of $0.5796 would give the bulls a run at the $0.5835 resistance level and $0.60 handle.

SEC v Ripple case-related chatter, SEC activity, and US lawmaker-related news need consideration.

However, a break below the 200-day EMA would bring the 50-day EMA and the $0.5470 support level into play.

The 14-day RSI reading, 60.83, indicates an XRP move through the $0.5835 resistance level before entering overbought territory.

XRPUSD 170224 Daily Chart

4-Hourly Chart

On the 4-hourly, XRP held above the 50-day and 200-day EMAs, confirming the bullish price trends. Significantly, the 50-day EMA crossed through the 200-day EMA on Friday, another bullish signal.

A breakout from the Friday high of $0.5796 would bring the $0.5835 resistance level and the $0.60 handle into play.

However, a break below the $0.55 handle would give the bears a run at the $0.5470 support level. A fall through the $0.5470 support level would bring the 50-day and 200-day EMAs into play.

The 4-hourly RSI, with a reading of 58.12, indicates an XRP move to the $0.5835 resistance level before entering overbought territory.

XRPUSD 170224 4-Hourly 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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