- XRP’s future hinges on the SEC’s pending appeal, with potential impacts from the U.S. presidential election—where a Trump victory could favor lighter regulations, possibly benefiting XRP and crypto markets.
- Meanwhile, Bitcoin sees strong institutional interest, with record ETF inflows in October, although its trajectory depends on upcoming U.S. economic data and Federal Reserve policies.
XRP, one of the leading digital assets, faces critical regulatory and market hurdles. After a recent 1.02% drop, XRP is currently testing the significant $0.55 level, and investors are anxiously awaiting updates on the SEC’s ongoing appeal against Ripple. This appeal could have far-reaching consequences for XRP and the entire crypto market, with crucial developments expected over the next few months.
The Ripple-SEC Showdown
The longstanding legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to shape XRP’s future. On October 30, a Californian judge, Phyllis Hamilton, acknowledged motions from both sides regarding the potential entry of a final judgment and even suggested an alternative resolution involving a “voluntary dismissal without prejudice.”
This court proposal would allow Ripple and the SEC to possibly resolve individual claims, providing the case with an element of flexibility. The response to this proposal, due by November 4, could bring unexpected turns to the legal proceedings.
The SEC’s primary focus lies in appealing a July 2023 ruling by Judge Analisa Torres, which stated that Ripple’s programmatic XRP sales did not meet the Howey Test criteria for an investment contract. If the SEC’s appeal is successful, U.S.-based crypto exchanges could be forced to delist XRP, a move that would hurt XRP’s trading volumes and market adoption.
This decision will likely be made by January 15, 2025, just days before the presidential inauguration, which could alter the entire regulatory landscape if Trump wins and follows through on his pledge to replace SEC Chair Gary Gensler.
XRP and the Election Factor
The U.S. presidential election looms as a potential catalyst for XRP’s price movement. If Donald Trump wins, there is speculation that he could take a more lenient stance on crypto regulations, including XRP, possibly dismissing the SEC’s case entirely. In contrast, a victory for Kamala Harris could imply more stringent regulatory oversight, possibly leading XRP below the $0.50 mark.
Bitcoin and the Broader Crypto Market
Meanwhile, Bitcoin (BTC), often seen as a bellwether for the crypto market, experienced a minor dip on October 30 due to labor market data indicating strong U.S. employment growth.
While this dampened demand slightly, BTC-spot ETFs reported net inflows of $870 million, suggesting continued interest among institutional investors. October 2024 has been a record month for BTC-spot ETFs, with nearly $4.5 billion in net inflows. A dovish outlook from the Federal Reserve could help drive BTC towards new highs, potentially hitting $75,000.
Future Outlook for XRP and BTC
As XRP navigates the final stages of its legal saga, the crypto market remains tense. The outcome of the SEC’s appeal and the U.S. election will determine whether XRP can finally move beyond its regulatory struggles or face increased restrictions.
Simultaneously, BTC’s trajectory depends heavily on U.S. economic data and Federal Reserve policies. Investors are watching closely, aware that the decisions made in the coming months could shape the future of crypto regulation and market momentum for years to come.
