While a ruling could come any time, Judge Torres will likely take more than two weeks to deliberate. The uncertainty about the decision continues to
While a ruling could come any time, Judge Torres will likely take more than two weeks to deliberate.
The uncertainty about the decision continues to leave XRP within a relatively tight range. Significantly, the Judge Torres rulings and the SEC motion for interlocutory appeal continue to influence sentiment toward Ripple and XRP.
New York Department of Financial Services Delists XRP
On Monday, news hit the wires for the New York Department of Financial Services removing XRP from its approved list of cryptocurrencies.
Crypto-Law US founder and Amicus Curiae attorney John E. Deaton shared the news, saying,
“After it was determined NOT to be a security. It’s not even a security if Ripple sells it on exchanges. Yea, this move isn’t political or punitive in nature.”
The New York Department of Financial Services has stringent crypto regulations in place. However, it is unclear why the DFS removed XRP and dogecoin (DOGE) while retaining ETH, another crypto SEC Chair Gary Gensler considers a security.
In January, the DFS announced a $100 million settlement with Coinbase (COIN). DFS investigations found failings in the company’s compliance program. Coinbase paid a $50 million penalty and invested $50 million in its compliance program.
SEC v Coinbase: Judge Failla Ruling Remains Pending
Investors are also awaiting the court ruling on the Coinbase motion to dismiss (MTD). Coinbase filed the MTD in August and has the backing of Republican Senator Cynthia Lummis.
Senator Lummis and others filed Amicus Curiae briefs in support of the MTD. Notably, Senator Lummis’s brief said,
“Through this case, the SEC seeks primary influence over economic, political, and legal questions under active consideration by Congress and multiple agencies.”
Senator Lummis and Senator Gillibrand are behind the Lummis-Gillibrand Responsible Financial Innovation Act of 2023. The senators reintroduced the bill in July. Highlights of the bill include,
- Securities and Commodities: Upholds the Howey test governing the presence of an investment contract.
- Fully regulates crypto asset exchanges: Requires crypto-asset exchanges to register with the Commodity Futures Trading Commission (CFTC).
A Judge Torres ruling denying the SEC motion for interlocutory appeal, a Judge Failla ruling for the Coinbase MTD, and passage of the Lummis-Gillibrand bill. These events would significantly change the US digital asset scene, with reduced SEC oversight being a favorable outcome for crypto advocates.
XRP Price Action
Daily Chart
XRP sat below the 50-day and 200-day EMAs, reaffirming bearish price signals. The $0.5042 resistance level continued to cap the upside. The Coinbase MTD and the SEC motion for interlocutory appeal leave XRP and the broader market in limbo.
Crypto-friendly updates from the two cases would support an XRP break above the $0.5042 resistance level and signal a move toward the 200-day EMA.
However, failure to break above the $0.5042 resistance level would leave sub-$0.48 in play.
The 39.50 14-Daily RSI reading indicates an XRP return to sub-$0.48 before entering oversold territory.
4-Hourly Chart
XRP hovers above the 50-day EMA while sitting below the 200-day EMAs, sending bullish near-term price signals but bearish longer-term price signals.
Failure to break above the $0.5042 resistance level would support an XRP move to the 50-day EMA. Adverse news from the ongoing SEC cases would support a break below the 50-day EMA and a return to sub-$0.48.
However, a break above the $0.5042 resistance level would give the bulls a run at the 200-day EMA and the trend line.
The 14-4 Hourly RSI 57.35 reading signals an XRP move through the $0.5042 resistance level before entering overbought territory.
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