XRP News Today! Update SEC vs. Ripple: A Pivotal Phase and Market Implications

The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple is approaching a decisive phase. As of Monday, March 17, the one-month countdown begins for Ripple to file its appeal-related reply brief, countering the SEC’s arguments.

Ripple’s deadline is set for April 16, while the SEC’s opening brief was filed on January 15, challenging Judge Torres’ ruling on the Programmatic Sales of XRP.

SEC Shake-Up Raises Uncertainty Over Appeal

Since the SEC’s opening brief, a wave of leadership changes has reshaped the agency’s stance on crypto regulation:

1. Gary Gensler stepped down as SEC Chair.

2. Former SEC Commissioner Paul Atkins, known for his crypto-friendly stance, was nominated as the new Chair by President Trump.

3. Mark Uyeda was appointed as Acting SEC Chair.

4. Commissioner Hester Peirce was appointed to head the newly established Crypto Task Force.

5. The SEC reassigned its lead crypto litigator, Jorge Tenreiro, to the IT department, signaling a shift in crypto enforcement strategies.

6. The Crypto Assets and Cyber Unit was disbanded, giving rise to the Cyber and Emerging Technologies Unit (CETU), focused on fraud cases.

If Paul Atkins is confirmed, this restructuring could signify the SEC’s withdrawal from non-fraud-related crypto cases, leading to speculation that the agency may abandon its appeal against Ripple.

Will the SEC Withdraw Its Appeal?

With no confirmation hearing scheduled for Atkins, the decision on the appeal may rest with Acting Chair Uyeda and Crypto Task Force Head Peirce.

Uyeda’s previous statements suggest a likelihood of withdrawal: “The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm. President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

Judge Analisa Torres’ Final Judgment in August 2024 fined Ripple $125 million for securities law violations—a fraction of the SEC’s $2 billion demand. The absence of fraud allegations could be a decisive factor in whether the SEC continues its appeal.

XRP Price Outlook: Legal Clarity Could Influence Demand

On Sunday, March 16, XRP ended its five-day winning streak, dropping 4.07% to close at $2.2952. The broader crypto market also declined by 2.39%, with total market capitalization falling to $2.65 trillion. But today, on Monday, March 17, XRP traded at $2.3324

Key factors influencing XRP’s price:

1. SEC Appeal Strategy: A withdrawal could push XRP above its all-time high of $3.55, while prolonged legal uncertainty may drop it below $1.50.

2. XRP-Spot ETF Prospects: Approval could drive prices toward $5, but unresolved legal issues may delay this process.

3. Macro Risks: Trade tensions and Federal Reserve policies could push XRP to $1.7938, while easing tensions may support recovery to $2.50.

Crypto Investment Trends: A Tough Period for ETPs

Crypto exchange-traded products (ETPs) faced significant outflows, with $1.7 billion exiting the market last week. This marks the fifth consecutive week of losses, bringing total outflows to $6.4 billion—an all-time high.

1. U.S. Investors Led the Exodus: U.S. investors accounted for 93% of last week’s outflows ($1.16 billion).

2. Bitcoin-related investment products recorded $978 million in outflows.

3. Ethereum and Solana investment products lost $175 million and $2.2 million, respectively.

4. Blockchain equity funds faced a $40 million sell-off.

However, XRP bucked the trend, attracting $1.8 million in fresh inflows, bringing its monthly total to $7.4 million. Year-to-date, XRP has amassed $212 million in inflows, trailing only Bitcoin ($612 million) and Ethereum ($412 million).

XRP Defies the Trend and Challenges Ethereum

XRP’s price against Etherium (ETH) reached its highest level in five years, touching 0.00128 ETH on March 15—a 925% rebound from its all-time low in June 2024. Market watchers speculate that XRP could surpass ETH’s market capitalization if the current trend continues.

1. Analyst Dom highlights 0.0012 ETH as a key resistance level, historically preceding explosive XRP rallies.

2. If XRP repeats past performances, an 80% rally could position it above Ethereum’s market capitalization.

3. XRP’s market cap is currently $138 billion, less than $100 billion short of Ethereum’s.

4. XRP’s Fully Diluted Valuation (FDV) briefly surpassed Ethereum’s earlier this week.

Ethereum’s Declining Market Share

Ethereum has struggled against competitors like Solana, with its market dominance shrinking by over 35.5% since Trump’s reelection. Several factors contribute to Ethereum’s underperformance:

1. Regulatory Sentiment: Trump’s pro-crypto stance has benefited XRP, while Ethereum remains under scrutiny.

2. Competition from Solana: Solana’s faster, cheaper transactions have drawn developers and traders away from Ethereum.

3. Ethereum’s Dencun Upgrade: While reducing transaction fees by 95%, the upgrade has weakened Ethereum’s deflationary appeal.

Conclusion: A Defining Moment for XRP and Crypto Markets

The SEC vs. Ripple case remains a critical driver for XRP’s price movement and market positioning. With leadership changes at the SEC and shifting regulatory priorities, the likelihood of the SEC withdrawing its appeal has increased.

This could provide long-awaited legal clarity, potentially driving XRP to new highs and strengthening its position in the crypto market. Meanwhile, Ethereum’s declining dominance highlights the growing competition in the layer-1 blockchain space.

The coming weeks will be crucial in determining XRP’s trajectory and its ability to challenge Ethereum’s market position.