XRP Legal Battle Heats Up

The Ripple case is intensifying as the SEC’s appeal challenges the Howey Test ruling, raising concerns about the agency's approach. Legal experts are warning that the SEC may face significant risks, which could lead to further XRP volatility and price speculation.

The Appeal: Examining the Second Prong of the Howey Test

Should the SEC prevail at the Second Circuit, the case will revert to Judge Torres for further application of the Howey Test. Legal analyst Deaton suggests that the SEC is likely to lose again, particularly concerning the second prong which assesses whether there's a common enterprise among investors.

Deaton highlights that unless investors' funds are pooled for shared profits and losses, the SEC may struggle to prove a common enterprise, especially in terms of programmatic sales on exchanges.

If the SEC wins, Ripple plans to petition the US Supreme Court, which Deaton believes is likely to take on the case due to its legal significance.

“The current makeup of the Supreme Court will decimate the SEC, potentially limiting its jurisdiction for decades.” - Deaton

SEC Chair Gensler Leaves Amid Criticism

SEC Chair Gensler stepped down on January 17, facing severe backlash. CryptoLaw commented on the ripple effect of the Ripple case, criticizing the SEC’s handling of its jurisdictional authority.

XRP Price Trends: Speculation Fuels Breakout

On January 17, XRP rose by 1.50%, closing at $3.2934. Speculation surrounding the SEC's potential appeal withdrawal could push XRP past its January 2018 all-time high of $3.5505. Conversely, if the SEC continues its appeal, XRP may see a price reversal.

Strategic Bitcoin Reserve Developments Drive BTC Demand

Meanwhile, Bitcoin (BTC) approached $105K as speculation about crypto-friendly policies from President-Elect Donald Trump intensified. Senator Lummis is advocating for a Strategic Bitcoin Reserve (SBR), which could significantly impact BTC's supply-demand dynamics.

“Working hard to get the Strategic Bitcoin Reserve and comprehensive digital asset legislation across the finish line.” - Senator Lummis

US BTC-Spot ETF Market Eyes Inflow Streak

The US BTC-spot ETF market recorded net inflows of $626.1 million, reflecting investor optimism about the SBR. This could lead to further demand for BTC, with potential for significant price increases if favorable legislation passes.

Bitcoin Price Outlook

On January 17, BTC surged by 3.94%, closing at $103,733. The trajectory for BTC remains closely tied to ETF inflows and SBR developments, with potential highs of $108,231 or declines towards $95K depending on legislative support.

Explore our expert analysis on the SEC’s next move and its implications for XRP’s future.