A Pivotal Forecast for Crypto Law

The presiding Judge in the Grayscale appeal case, Neomi Reo, labeled the SEC arbitrary and capricious. Considering the frequent references to the Hinman speech and the speech-related documents, Judge Torres may deliver an unwanted critique of the SEC and its power-wielding methods.

Investors remain uncertain about the Judge Torres ruling on the SEC motion for interlocutory appeal. However, things will become more clear on Friday. Legal experts will go through the SEC response and share their thoughts. Demonstrating the appropriateness of interlocutory appeal will be vital.

After the SEC files the response, Judge Torres will deliberate and rule on the SEC motion. The ruling could be significant for both parties. Judge Torres could cement her Programmatic Sales ruling and close the door on further appeals. John E. Deaton believes Judge Torres will deny the motion and use the platform to address the Judge Rakoff comments relating to her ruling.

Time Running out for the SEC and SEC Chair Gary Gensler?

Following the Grayscale and Ripple victories against the SEC, Gary Gensler and the SEC face an uncertain future. Too many cases running concurrently and the unwillingness to cede may fuel US lawmaker condemnation.

A Judge Torres ruling against the SEC motion and a Judge Failla ruling in favor of the Coinbase (COIN) Motion to Dismiss are possible headaches for the SEC and Capitol Hill.

Considering the SEC onslaught of the crypto market, CryptoLaw founder and Amicus Curiae attorney John E. Deaton targeted former SEC Chair Jay Clayton, saying,

“I will never let Jay Clayton off the hook for putting his own interests above everything else. Rolling Stone Magazine was 100% when it described him – at the time of his SEC appointment: as ‘the most conflicted SEC Chair in History.’ Do a little research.”

The Tuesday Session

The SEC v Ripple case will remain the focal point. An early SEC response to the Ripple opposition filing would move the dial.

However, investors must also consider SEC v Coinbase case-related news. The SEC may not have considered the implications of running the Coinbase and Ripple cases concurrently.

SEC v Coinbase updates could be pivotal. A ruling granting the Coinbase MTD could deliver a vastly different US regulatory landscape. XRP has moved sideways in recent sessions. The significance of the two ongoing cases leaves investors in a cautious mood.

XRP Price Action

Daily Chart

Another range-bound session left XRP below the trend line, reflecting investor caution ahead of the key Court rulings. However, buyers continued to provide support at the $0.5042 support level.

Avoiding a fall through the $0.5042 support level would give the bulls a run at the trend line. A break above the trend line would bring the 200-day EMA into play. However, investors would need a crypto event to support a breakout.

Failure to move through the trend line would leave XRP at risk of a fall through the $0.5042 support level. A return to sub-$0.50 would bring sub-$0.48 into view as uncertainty overshadows optimism.

The 35.26 14-Daily RSI reading shows XRP has room to fall before hitting oversold territory.

4-Hourly Chart

XRP holds at the $0.5042 support level. A fall below the support level would bring sub-$0.48 into play. SEC activity and ongoing lawsuits remain headwinds in the near term.

An XRP break above the trend line would signal a shift in sentiment. An unconvincing SEC response to the Ripple opposition filing would support a breakout to target the $0.5470 resistance level.

However, the 50-day EMA is confluent with the trend line, signaling stern resistance at the Monday high of $0.5131.

The 14-4H RSI 47.91 reading shows XRP has room to fall before entering oversold territory.