Ripple's SEC Battle Intensifies: What the OIG Probe Means for XRP and Bitcoin's $95k Dilemma

In 2018, Bill Hinman declared that Bitcoin (BTC) and Ethereum (ETH) were not securities, a statement that has since sparked controversy due to his ties with the law firm Simpson Thacher, which promotes Enterprise Ethereum. After leaving the SEC, Hinman returned to Simpson Thacher, leading to allegations that he received millions while at the SEC.

During the ongoing Ripple case, the SEC attempted to protect Hinman’s speech-related documents under attorney-client privilege, but the court denied these requests, revealing that Hinman met with Simpson Thacher despite SEC ethics warnings.

OIG Investigation Findings May Extend to Former SEC Chair Jay Clayton

In March, Empower Oversight ramped up scrutiny of the SEC by sending a letter to an FOIA Officer, raising ethics concerns about former SEC Chair Jay Clayton, who publicly stated that Bitcoin is not a security. Clayton agreed to the Ripple lawsuit just before leaving the SEC, later joining One River Asset Management, a hedge fund focused on BTC and ETH.

The upcoming OIG report could expose the SEC’s attempts to promote ETH at the expense of Ripple and XRP. If evidence of conflicts of interest emerges, it may pressure the SEC to withdraw its appeal, significantly impacting XRP investors.

XRP Price Trends: OIG and Appeal in Focus

On December 22, XRP saw a 1.58% decline, closing at $2.2011 amid ongoing legal challenges with the SEC. If the SEC withdraws its appeal, XRP could aim for its all-time high of $3.5505 from January 2018. However, if the SEC files its opening brief by January 15, XRP may drop below $1.50.

BTC-Spot-ETF Outflows and SBR Uncertainty

Bitcoin also faced pressure, falling below $95k on Sunday. The Fed's hawkish economic outlook affected demand for BTC-spot ETFs, which reported inflows of $457 million but experienced outflows that dampened market sentiment. Progress towards a US strategic Bitcoin reserve (SBR) is crucial, especially with Trump's new appointments to the Crypto Council.

Despite uncertainty regarding Congress and the Fed's support for BTC as a strategic asset, MicroStrategy’s CEO Michael Saylor advocates for an SBR, suggesting it could strengthen the US dollar and enhance the economy.

Bitcoin Price Outlook

On December 22, BTC declined 2.26%, closing at $95,304. Future BTC price trends will depend on upcoming US consumer confidence and jobless claims data. Positive figures could lead BTC towards the $90,742 support level, while weaker data may drive it closer to $100k. Additionally, SBR-related news and BTC-spot ETF flow data remain critical factors to watch.