Summary:
SEC challenges Ripple's Summary Judgment, impacting crypto regulation.
XRP price surged 3.60%, dependent on SEC's appeal decision.
Senator Lummis proposes a US strategic Bitcoin reserve to accumulate one billion BTC.
BTC reaches $101k, fueled by positive ETF inflows and potential SBR discussions.
Future BTC trends hinge on government actions and ETF market flows.
What Is the SEC Appealing Against in the Ripple Case?
The SEC is challenging the 2023 Summary Judgment and August’s Final Judgment in the Ripple case. The appeal about the Summary Judgment and the Programmatic Sales of XRP ruling is particularly significant. Judge Analisa Torres ruled that programmatic sales of XRP did not satisfy the third prong of the Howey Test, which is crucial in determining if a transaction qualifies as a security.
If the SEC withdraws its appeal, the ruling could set a vital legal precedent affecting the SEC’s cases against crypto exchanges like Coinbase and Binance, and may limit the SEC’s authority in the crypto space.
XRP Price Volatility and Regulatory Impact
On Friday, December 13, XRP rallied 3.60%, closing at $2.4221 after a previous 2.37% loss. This gain was fueled by optimism regarding Crenshaw’s renomination and a potential withdrawal of the SEC's appeal. Depending on the SEC's next moves, XRP could either fall toward $1 or surpass its all-time high of $3.5505.
BTC Supply-Demand Contingent on Strategic Bitcoin Reserve Progress
Bitcoin (BTC) rose back to the $101k level as investors focused on the progress towards a US strategic Bitcoin reserve (SBR). Senator Cynthia Lummis is advocating for the government to accumulate one billion BTC, which could significantly impact US debt levels.
Lummis believes that an SBR would make the US government a buyer and holder of BTC, helping to mitigate oversupply risks. Currently, the government holds 198,109 BTC, valued at $20.16 billion.
Positive Demand Outlook Fuels BTC-Spot ETF Market Inflows
The US BTC-spot ETF market is experiencing a strong inflow trend, with net inflows reported from several funds:
- Fidelity Wise Origin Bitcoin Fund (FBTC): $60.0 million
- Bitwise Bitcoin ETF (BITB): $33.2 million
- ARK 21Shares Bitcoin ETF (ARKB): $28.4 million
However, the Grayscale Bitcoin Trust (GBTC) faced net outflows of $106 million. The overall demand for BTC-spot ETFs is bolstered by potential US SBR discussions and a pro-crypto agenda.
Bitcoin Price Outlook
On December 13, BTC gained 1.47%, closing at $101,394, marking a new record. The future price trends of BTC will depend on ETF market flows, news related to the SBR, and actions from the US government regarding BTC. A significant BTC sale by the government could raise concerns about oversupply, pushing prices towards $95,000.
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