XRP News Today: Will SEC’s Robinhood Decision Impact Ripple’s Legal Battle? BTC Slides

SEC Closes Robinhood Crypto Investigation as Regulatory Shift Continues

The SEC’s latest moves signal a dramatic policy reversal that could reshape the industry. On Monday, February 24, SEC activity grabbed the market headlines as its Crypto Task Force continued reversing regulatory actions from the Gensler era.

Robinhood (HOOD) announced that the SEC has officially closed its investigation into Robinhood crypto without any enforcement action. Robinhood stated:

“We applaud the staff’s decision to close this investigation with no action. Let me be crystal clear—this investigation never should have been opened. Robinhood Crypto always has and will always respect federal securities laws and never allowed transactions in securities. As we explained to the SEC, any case against Robinhood Crypto would have failed.”

Robinhood’s Chief Legal, Compliance, and Corporate Affairs Officer, Dan Gallagher, also criticized the SEC’s previous approach, stating:

“Instead of regulation by enforcement, it’s time for the SEC to turn to regulation by regulation – providing market participants with clarity and an appropriate regulatory framework for digital assets.”

Acting SEC Chair Mark Uyeda Signals Regulatory Shift

The SEC’s decision to end the investigation underscores its shift from non-fraud-related enforcement actions against crypto firms. Acting SEC Chair Mark Uyeda discussed the agency’s new mantra at the Florida Bar’s 41st Annual Federal Securities Institute and M&A Conference, stating:

“Over the past five weeks, the Commission has begun the process of returning its narrow mission to facilitate capital formation while protecting investors and maintaining fair, orderly, and efficient markets. One purpose of the Commission’s regulatory mandate is to create capital markets that facilitate the competitiveness and ingenuity of American industry. Properly implemented, we can help President Trump achieve his goal of a new golden age of economic growth and innovation, creating more jobs, wealth, and prosperity for all Americans.”

The Acting SEC Chair showcased some recent SEC actions to foster innovation, including:

• Rescinding Staff Accounting Bulletin No. 121, which had effectively prevented banks and broker-dealers from taking custody of crypto assets.
• Appointing Commissioner Hester Peirce to lead a crypto task force, tasked with developing a comprehensive regulatory framework for crypto firms.

In the last two weeks, the SEC has also:

• Dismissed its case against Coinbase (COIN).
• Withdrew its appeal against rulings in the Blockchain Association and Crypto Freedom Alliance of Texas (CFAT) case.
• Jointly requested stays in the Binance and Lejilex cases, delaying proceedings until April, citing leadership changes and the Crypto Task Force’s involvement.
• Closing its investigations into Robinhood Crypto and Opensea.

However, the SEC has remained silent on its plans to pursue the appeal against the Programmatic Sales of XRP ruling in the Ripple case.

XRP Price Trends: SEC Appeal and Spot ETF Developments

On Monday, February 24, XRP tumbled 11.50%, following Sunday’s 0.01% slip to close at $2.2801. XRP underperformed the broader crypto market, which declined by 6.48% to a total market cap of $2.93 trillion.

Despite the SEC’s regulatory shift, investors remain focused on whether the agency will continue pursuing its appeal in the Ripple case or decide to withdraw. A withdrawal could pave the way for an XRP-spot ETF approval, potentially driving institutional demand.

• SEC Appeal Decision: If the SEC withdraws its appeal, XRP could rally beyond its all-time high of $3.5505. However, continued legal uncertainty may keep prices below $1.50.
• ETF Developments: Approval of an XRP-spot ETF could trigger institutional inflows, potentially pushing XRP toward $5.

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

Bitcoin Slides as Trump Holds Firm on Tariffs

Despite the increasing SEC activity, bitcoin (BTC) also hit the reverse on February 24. Market risk sentiment waned after US President Trump declared tariffs on Canada and Mexico will be effective March 4. He also suggested that reciprocal tariffs will go ahead.

BTC and the broader crypto market have remained highly sensitive to US tariff developments. Higher tariffs could drive inflationary pressures, forcing the Fed to maintain a higher-for-longer rate path. A more hawkish Fed rate path would weigh on risk assets, including BTC.

Did South Dakota Sink Hope for a US Strategic BTC Reserve?

On February 24, South Dakota’s House Commerce and Energy Committee ended the chances of state-level Strategic BTC Reserve (SBR). Monday’s vote came after the State of Montana rejected legislation to allow state investments into precious metals and digital assets.

The decision casts doubt on broader efforts to establish Bitcoin as a strategic asset at the national level. Earlier speculation about a US SBR contributed to BTC’s rally, pushing it to a January 20 record high of $109,312.

However, recent setbacks, including tariffs, Fed hawkishness, and BTC-spot ETF outflows, have weighed on sentiment, dragging BTC toward $90k. On February 24, the US BTC-spot ETF market extended its outflow streak to five sessions.

Bitcoin Price Outlook

On February 24, BTC slid by 4.64%, following Sunday’s 0.41% drop to close at $91,622. Bitcoin’s struggle continues—17 straight sessions below the critical $100k mark.

Key BTC Price Scenarios:

• Bearish: Escalating tariff risks, stronger US economic data, a hawkish Fed stance, and resistance to a US Strategic Bitcoin Reserve (SBR) could send BTC below $90,000.
• Bullish: A reversal in trade tensions, progress toward a Bitcoin reserve, and dovish Fed signals could push 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 risks.
3. US economic indicators and Fed policy shifts.
4. Progress on Strategic Bitcoin Reserve efforts.
5. BTC-spot ETF developments and institutional inflows.

A potential SEC retreat on Ripple could send shockwaves through crypto markets, while a Bitcoin reserve strategy remains the wildcard for institutional adoption. Keep an eye out for our updates and the latest insights here.