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XRP News- Will SEC Internal Conflicts Affect Ripple Case Outcome?

XRP News- Will SEC Internal Conflicts Affect Ripple Case Outcome?

XRP News- SEC Internal Issues and Ripple Case Outcome Prospects

XRP News– On Tuesday, July 9th, XRP saw a modest increase of 0.97%, following a 2.76% gain on Monday, July 8th, closing the day at $0.4355. As the market awaited developments, there were no new updates in the SEC versus Ripple case. Investors are anticipating a court decision regarding the penalty Ripple faces for violating US securities laws, as ruled by Judge Analisa Torres in July 2023, which found Ripple guilty of selling unregistered XRP to institutional investors.

The potential penalty could range significantly, from $10 million to $2 billion, and Judge Torres might also consider prohibiting XRP sales to US institutional investors based on Ripple’s conduct post-complaint. If she determines that Ripple continued breaching securities laws after the December 2020 complaint, such restrictions could be enforced.

Moreover, ongoing investigations into conflicts of interest within the SEC could potentially impact the final outcome of the case, adding an additional layer of uncertainty to Ripple’s legal proceedings.

Can the Inspector General’s Investigation Uncover Conflicts of Interest?

In February 2024, Empower Oversight initiated an investigation into potential conflicts of interest within the SEC regarding former SEC Corporation Finance Director William Hinman. The US government watchdog, Office of Inspector General (IG), announced it was nearing the conclusion of its probe.

The conflicts of interest revolve around Hinman’s 2018 speech where he stated that bitcoin (BTC) and ethereum (ETH) were not securities. Empower Oversight alleged that during his tenure at the SEC, Hinman received millions of dollars from his former employer, Simpson Thacher, a firm involved in promoting Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher.

Despite warnings from the SEC Ethics Division, Hinman continued to engage with Simpson Thacher while serving at the SEC.

If the IG determines unethical conduct at the SEC, it could be seen as a significant development for the US digital asset industry. Such findings might prompt US lawmakers to reassess the SEC’s enforcement tactics towards digital assets.

The Office of Inspector General is expected to release its findings soon. On Monday, July 9, Amicus Curiae attorney and US Senate candidate for Massachusetts John E. Deaton raised concerns about SEC practices.

John E. Deaton’s Strategy to Highlight Regulatory Conflicts in the US

I will offer a bill that imposes a 3-5 year statutory bar, preventing regulators (including lawyers) from working in the industry they were just in charge of regulating. […]. You won’t get to leave the SEC and immediately work for a hedge fund. I plan to weld the revolving door existing at our federal agencies permanently shut.

John E Deaton

In March 2024, Empower Oversight initiated a FOIA request to obtain records on potential ethical breaches involving William Hinman and former SEC Chair Jay Clayton. Allegedly, Clayton publicly stated that Bitcoin (BTC) wasn’t a security and supported Hinman’s stance on Ethereum (ETH).

Following his tenure, Clayton reportedly joined the crypto-focused hedge fund One River Asset Management, which deals with BTC and ETH but not XRP.

Exposing these conflicts of interest within the SEC could disrupt its strategy, including potential appeals against adverse court rulings. The SEC’s plan to appeal the Programmatic Sales of XRP ruling remains intact, posing further challenges for XRP.

In July 2023, Judge Analisa Torres ruled that XRP’s programmatic sales didn’t meet the third prong of the Howey Test. If the SEC proceeds with an appeal post-Ripple verdict, XRP may face downward pressure.

Investors should stay vigilant as the court decision looms. Monitor real-time data and expert insights to adapt trading strategies accordingly. Stay informed with our latest updates to navigate the evolving crypto market landscape.

XRP Price Trends and Analysis

XRP News- Will SEC Internal Conflicts Affect Ripple Case Outcome?
XRP News- Will SEC Internal Conflicts Affect Ripple Case Outcome? 1

XRP currently sits below both the 50-day and 200-day Exponential Moving Averages (EMAs), indicating a bearish trend in its price movement. Traders are closely watching key technical levels for potential signals of bullish or bearish momentum.

A breakout above the $0.45 resistance level could potentially lead XRP towards the trend lines and the 50-day EMA, with further upside targeting the 200-day EMA. However, resistance at the top trend line and the 50-day EMA may limit bullish advances.

Conversely, a decline below the $0.42 support level might invite further selling pressure towards the $0.40 mark. The current 14-day Relative Strength Index (RSI) reading of 38.49 suggests XRP is approaching but has not yet entered oversold territory, indicating potential for further downside before a possible rebound.

Investors should remain attentive to developments in the SEC vs. Ripple case and SEC activities, as these factors could significantly impact XRP’s price dynamics in the near term. Monitoring these variables alongside technical indicators will be crucial for assessing potential trading opportunities and risk management strategies.

For the latest in crypto updates, keep tabs on Crypto Data Space.

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