- The SEC vs Ripple battle continues, with lawyer James Murphy saying a settlement is very likely this year despite the continued SEC onslaught.
- XRP remains below the 50-day and 200-day EMAs, which is a bearish signal, and despite a weekly 4.4% uptick, analysts say it must breach the $0.547 resistance for sustained gains.
The weekly spectacle that had become the Ripple vs. SEC case has slowed down in recent days, with the most recent update being the SEC’s victory after the court ordered Ripple to hand over financial documents to the watchdog. Legal analysts say we are approaching a critical phase in the trial, which could immensely impact the price of XRP.
In a recent interview, crypto lawyer James Murphy dismissed the impact of the financial document ruling. He further stated that even if Ripple is found guilty of security breaches through its institutional sales, it can appeal, which will roll over the lawsuit to next year.
This is significant as by then, the US will have gone to the polls, and the country could be under a whole new leadership spearheaded by Donald Trump, who is leading in the polls. Murphy, who has in the past worked with titans like JPMorgan, Goldman Sachs and Morgan Stanley, stated:
This is an election year and things could change dramatically. […] The election could change the direction of the SEC. We could see a very different counterparty in this litigation which might be more interested in a reasonable settlement.
Murphy added that he would not be shocked if the new SEC leadership went for “an outright dismissal” of the Ripple lawsuit.
While the outright dismissal may sound too ambitious, the SEC has been taking hits recently as more people, including lawmakers, question the regulator’s conduct. Any other significant loss at the hands of a crypto entity after its embarrassing Debt Box episode could send heads rolling.
Last week, US Senators wrote a letter to the SEC, criticizing its conduct and stating that it’s unconscionable that a federal agency “could operate in such an unethical and unprofessional manner.”
Amid all the drama, officials are jumping ship and seeking opportunities elsewhere as the spotlight now gets shone on the SEC. According to Fox Business Network’s Charles Gasparino, the crypto and cyber unit is the most affected, and the “bleed of senior staff under Gensler’s controversial leadership of the agency isn’t letting up.”
SCOOP: @SECGov bracing for major exodus among senior enforcement lawyers in its crypto assets and cyber unit, according to officials at major law firms who have seen several of the resumes. @FoxBusiness is withholding names to protect privacy; the moves suggest that the bleed of…
— Charles Gasparino (@CGasparino) February 9, 2024
Ripple Chief Legal Officer Stuart Alderoty called on the lawyers leaving the SEC to “blow the whistle and share details about Gensler’s “controversial leadership.”
What’s Next for XRP as Ripple Fights on With the SEC?
XRP trades for $0.52 at press time and has remained range-bound over the past day, with an intra-day high of $0.537.
XRP’s trading volume has notably shot up by 48% to hit $1.1 billion. However, the token exhibits bearish signals, including continued trading below the 50-day and the 200-day EMAs. Analysts believe XRP must post a daily close above the $0.5470 resistance to mount a sustained price rally. Conversely, breaching the support at $0.52 could set the token up for a bigger price drop.
