XRP News Today: SEC Appeal Hangs Over XRP Price While Bitcoin Dips Below $95k

In the dynamic world of cryptocurrency, Ripple CEO Brad Garlinghouse has expressed his frustrations following a recent feature on 60 Minutes. Despite having a lengthy discussion with host Margaret Brennan about the SEC's contentious lawsuit against Ripple, Garlinghouse was dismayed that a crucial detail was omitted: a Federal Judge's ruling stating that XRP is not a security. This landmark ruling, issued in July 2023, found that programmatic sales of XRP did not meet one of the fundamental criteria of the Howey Test, which determines whether assets are classified as securities. This ruling is critical as the SEC prepares to appeal.

John Reed Stark, a former SEC official, entered the debate claiming that cryptocurrencies lack inherent utility and that US courts have consistently deemed them securities. The SEC’s decision to appeal the Ripple case holds significant implications not just for XRP but for the cryptocurrency sector at large.

The Uncertain Road Ahead for XRP

The SEC's move, or lack thereof, will become clear on January 15, 2025, when the agency must submit its opening brief, just a few days before SEC Chair Gary Gensler exits his position. This ambiguity is likely causing anxiety among XRP investors, especially as the coin recently saw a dramatic dip from its peak of $2.907 on December 3 to a closing price of $2.2176, down 14.86% just days later. Furthermore, the overall crypto market fell by 6.39%, shrinking the total market cap to approximately $3.39 trillion.

Significantly, the outcome of the Senate Banking Committee vote on December 11 regarding SEC Commissioner Carline Crenshaw’s renomination could greatly influence XRP’s future. Should the committee vote against Crenshaw, there may be an opportunity for a pro-crypto commissioner to step in, potentially reversing the SEC’s appeal and igniting a rally for XRP. On the contrary, if she’s renominated, uncertainty would linger as the new year approaches.

Bitcoin: Below $95k and the Strategic Reserve Debate

Meanwhile, Bitcoin (BTC) has faced significant volatility as it dropped beneath the psychological threshold of $95k on December 9, after failing to surpass its record high of $103,628 from December 5. This decline follows a period of speculation suggesting that BTC might be recognized as a strategic reserve asset by the US government, a move that would require extensive approvals from Congress, the Federal Reserve, and even the Treasury.

Prominent figures in the crypto sphere, including Binance founder Changpeng Zhao, have suggested that China may be positioning itself to adopt BTC as a strategic reserve asset, potentially tightening its supply.

Microsoft and BTC: A Possible Shift?

The conversation surrounding BTC's inclusion in major corporations is heating up. On December 10, Microsoft shareholders were set to vote on a proposal to add BTC to the company’s balance sheet during the Annual Shareholders Meeting, despite resistance from the board. The proposal emphasizes the potential of BTC as a hedge against inflation, referencing the success of firms like MicroStrategy, which has seen a staggering 313% increase in its stock thanks to its BTC holdings.

If Microsoft approves the acquisition, it could pave the way for other major firms to follow suit. The National Center for Public Policy Research has even put forth a proposal for Amazon shareholders to consider a Bitcoin Treasury Assessment.

What Lies Ahead for Bitcoin?

As for BTC's price, it closed at $97,434 on December 9, having seen a slight rebound on December 8. The near-term trajectory for Bitcoin will depend heavily on upcoming votes and regulatory developments surrounding BTC spot ETFs, cues from the government, and shareholder votes at influential companies.

In a striking statement, economist Peter Schiff called on the Biden administration to sell off a large quantity of Bitcoin, arguing it would alleviate budget deficits and eliminate ongoing discussions regarding a national Bitcoin reserve.

Final Thoughts

The futures of both XRP and Bitcoin hang in the balance as critical decisions loom in the coming weeks. With the potential for regulatory shifts and company level changes, investors are urged to stay informed as these developments unfold. For those navigating the thrilling yet unpredictable crypto landscape, the stakes couldn’t be higher.