XRP News Today: Ripple Case Faces New Twist from SEC Conflict Probe; BTC at $95K

Will the SEC Disclose Findings of Potential Crypto Conflicts of Interest?

On Sunday, February 23, uncertainty lingered about the SEC’s intent to pursue its appeal against the Programmatic Sales of XRP ruling in the Ripple case. Speculation grew after the SEC dismissed the Coinbase case (COIN), suggesting a potential withdrawal from the Ripple appeal. However, unlike the Coinbase case, the court’s rulings added a layer of complexity to the SEC’s appeal strategy.

Meanwhile, findings from an Office of Inspector General’s (OIG) investigation into potential crypto conflicts of interest within the SEC could tip the scales in Ripple’s favor. Former SEC Chair Gary Gensler withheld the OIG’s findings before stepping down on January 15. Since then, Acting Chair Mark Uyeda and Commissioner Hester Peirce have remained silent.

The silence suggests that the OIG potentially found evidence of conflicts of interest, which may affect the SEC’s appeal strategy.

Why Does the OIG Investigation Matter?

US government whistle blower Empower Oversight (EO) reported potential crypto conflicts of interest within the SEC to the OIG. Empower Oversight alleges Bill Hinman, former Director of the SEC’s Division of Corporation Finance, exhibited bias against Ripple and XRP. In 2018, Hinman famously stated that bitcoin (BTC) and ethereum (ETH) were not securities.

The contentious issue related to Hinman’s connection with legal firm Simpson Thacher, part of a group promoting Enterprise Ethereum. EO alleges that Hinman received millions of dollars from his former employer, Simpson Thacher, while working on an SEC crypto regulatory framework. Hinman returned to Simpson Thacher after leaving the SEC.

The Hinman investigation linked directly to the SEC vs. Ripple case. Court documents showed that Hinman continued meeting with Simpson Thacher employees despite warnings from the SEC’s Ethics Division. The SEC failed on at least six attempts to shield the Hinman speech-related documents under attorney-client privilege.

Given these factors, pressure may build on the SEC to withdraw its appeal if the OIG findings confirm conflicts of interest. EO and Fox Business Journalist Eleanor Terrett filed Freedom of Information Act (FOIA) requests for the OIG’s report. A non-responsive SEC led to EO suing the agency for failing to release the OIG’s findings.

XRP Price Trends: OIG Findings, SEC Appeal, and XRP-Spot ETFs

On Sunday, February 23, XRP slipped by 0.01% after Saturday’s 0.19% gain to close at $2.5765. XRP tracked the broader crypto market, which edged 0.08% lower to a total market cap of $3.14 trillion.

Notably, XRP sits well below the January 16 high of $3.3999 and its 2018 all-time high of $3.5505. The SEC’s appeal plans, the OIG’s findings, and XRP-spot ETF developments will be crucial for near-term XRP price trends.

• SEC Appeal Decision: A withdrawal of the SEC’s appeal could push XRP beyond its all-time high of $3.5505, while a continued legal battle may keep prices below $1.50.
• ETF Developments: Approval of an XRP-spot ETF could drive institutional inflows, potentially propelling prices toward $5.

Read expert analysis on what could drive XRP to new highs here.

Bitcoin in Sideways Move Amid Strategic Reserve Uncertainty

Amid XRP speculation, Strategic BTC Reserve (SBR)-related news left bitcoin (BTC) hovering below the $100k mark.

Montana rejected House Bill No. 429 on Saturday, February 22, opposing state investments into precious metals and digital assets due to fiscal conservatism. Bitcoin Laws, which tracks Bitcoin and Digital Asset legislation, stated:

“HB 429 failed in the House, largely due to fiscal conservative opposition. Critics objected to using General Fund money, calling it ‘speculation with taxpayer dollars’. Despite arguments that digital assets could provide strong returns, too many Republicans joined the opposition, and the bill was rejected.”

Despite the rejections, 32 US states have introduced legislation to establish state-level SBRs, potentially paving the way to a national SBR. A national SBR would tilt the supply-demand balance firmly in BTC’s favor, supporting a move to new record highs.

Bitcoin Price Outlook

On February 23, BTC fell 0.41%, reversing Saturday’s 0.31% gain to close at $96,185. In another crucial week for BTC and the digital asset markets, US economic data, sentiment toward the Fed rate path, US tariff developments, SBR-related progress, and BTC-spot ETF demand will influence BTC price trends.

Key BTC Price Scenarios:

• Bearish: Rising tariff threats, upbeat US economic data, a more hawkish Fed, and government resistance to a US SBR could drag BTC toward $90,000.
• Bullish: Easing trade concerns, progress toward a US SBR, and a more dovish Fed rate path may drive BTC toward its all-time high of $109,312.

Market Outlook: Regulatory Developments Remain Key

Investors should closely monitor:

1. The SEC’s decision on its Ripple case appeal.
2. US tariff policies and inflation implications.
3. US economic indicators and Fed policy.
4. Progress on Strategic Bitcoin Reserves.
5. BTC-spot ETF developments and institutional inflows.

Will the SEC withdraw its Ripple appeal? Will the US government embrace a Bitcoin reserve strategy? Keep an eye out for our updates and the latest insights here.