- The SEC’s upcoming closed meeting on February 20 could determine the fate of its appeal against Ripple, with potential withdrawal boosting XRP’s price and ETF prospects.
- Meanwhile, Bitcoin struggles to break $100k amid U.S. economic uncertainty, making regulatory decisions key for the crypto market.
The crypto world is on edge as investors anticipate a game-changing decision regarding Ripple and its native token, XRP. With the SEC’s closed meeting scheduled for February 20, speculation is mounting over whether the regulatory body will withdraw its appeal against Ripple. The outcome could have major implications for the price of XRP and the broader crypto market.
SEC’s Closed Meeting: What’s at Stake?
The U.S. Securities and Exchange Commission (SEC) has been in an ongoing legal battle with Ripple over the classification of XRP as a security. However, recent shifts within the SEC’s leadership suggest a potential change in stance. The appointment of Acting Chair Mark Uyeda and the involvement of Commissioner Hester Peirce in the Crypto Task Force have fueled optimism that the SEC may adopt a more crypto-friendly approach.
The closed meeting will cover topics such as litigation claims, administrative proceedings, and enforcement actions, leaving the door open for discussions on crypto-related cases, including Ripple’s. Legal experts predict that incoming Chair Paul Atkins could steer the SEC away from aggressive enforcement, increasing the likelihood of the appeal being withdrawn.
Market Impact: XRP’s Price Trends and ETF Speculation
XRP has been on a bullish trajectory, gaining 14% last week amid speculation about a potential U.S. XRP-spot ETF and the SEC’s appeal withdrawal. Investors are closely watching the ETF market, as approval could drive significant institutional inflows into XRP. The SEC’s acknowledgment of 19b-4 applications from firms like Grayscale and 21Shares suggests a potential shift in regulatory stance.
Possible Price Scenarios:
- Bullish Case: If the SEC withdraws its appeal, XRP could break past its all-time high of $3.55.
- ETF Catalyst: An approved XRP-spot ETF could propel the token toward $5.
- Bearish Case: If the SEC continues its legal fight and rejects ETF applications, XRP may fall below $1.50.
Bitcoin’s Sideways Struggle Amid Economic Uncertainty
Beyond XRP, Bitcoin (BTC) is also facing a critical week. The flagship cryptocurrency has been struggling to break the $100k barrier, largely due to U.S. economic uncertainties, including rising inflation and potential tariffs under President Trump’s policies.
Key Catalysts to Watch
For both XRP and BTC, several macroeconomic and regulatory factors will shape market trends:
- The SEC’s decision on the Ripple appeal.
- U.S. tariff policies and inflation trends.
- Federal Reserve commentary on interest rates.
- Institutional adoption of crypto through spot ETFs.
As the crypto community awaits the SEC’s decision, the next few weeks could be pivotal in shaping the future of XRP and the broader digital asset market. Will the SEC finally take a step toward regulatory clarity, or will the legal battle continue? Investors are watching closely.