XRP News Today: Will the SEC’s Next Move Trigger an XRP Rally? BTC Hovers Sub-$85K

SEC Ends the Crypto-Security Debate

On February 27, the SEC settled a long-standing debate on whether meme coins are securities. The SEC’s Division of Corporation Finance issued a statement clarifying its stance, stating:

“Although individual meme coins may have unique features, meme coins typically share certain characteristics. Meme coins typically are purchased for entertainment, social interaction, and cultural purposes, and their value is driven primarily by market demand and speculation. In this regard, meme coins are akin to collectibles. Meme coins also typically have limited or no use or functionality.”

Further, the SEC clarified that meme coins are not subject to its regulatory oversight, explaining:

“It is the Division’s view that transactions in the types of meme coins described in this statement, do not involve the offer and sale of securities under the federal securities laws.[4] As such, persons who participate in the offer and sale of meme coins do not need to register their transactions with the Commission under the Securities Act of 1933 (“Securities Act”) or fall within one of the Securities Act’s exemptions from registration. Accordingly, neither meme coin purchasers nor holders are protected by the federal securities laws.”

Former SEC Office of Internet Enforcement Chief John Reed Stark remarked:

“The SEC Division of Corporation Finance just issued guidance on memecoins saying they are NOT securities but are akin to Beanie Babies and American Girl Dolls. The technological innovation of crypto assets never ceases to amaze.”

SEC vs. Coinbase: Commissioner Hester Peirce Issues Statement.

Meanwhile, SEC Commissioner Hester Peirce, head of the Crypto Task Force, issued a statement regarding the Coinbase case (COIN), saying:

“Today the Commission settled its case against Coinbase by dismissing it with prejudice. I did not support the action against Coinbase. Among other things, I was concerned that it was part of the Commission’s larger strategy to use its enforcement tool to regulate the crypto industry. Typically, developing regulations to address new industries and business practices is the province of the Commission’s capable, expert policy divisions.”

Peirce criticized the SEC’s previous enforcement-driven approach, arguing:

“The decision by the previous Commission to shift this function to the Division of Enforcement by engaging in a large-scale regulation-by-enforcement initiative harmed the American public, adversely affected the industry, and impeded the ability of the Commission’s skilled and dedicated professional staff to use their expertise as it was intended to be used.”

She reaffirmed the agency’s new approach to crypto regulation, concluding:

“The current Commission has now issued such a directive with the formation of the Crypto Task Force: It is the policy staff who will take the lead in engaging with the public to build a regulatory framework that serves the American public. This new approach drives today’s dismissal of the charges against Coinbase, but it does not signal an end to the Commission’s use of its enforcement tool in appropriate cases.”

The SEC’s decision to drop the Coinbase case has fueled speculation that the agency may also withdraw its appeal in the Ripple case. Before SEC Chair Gary Gensler’s departure, the agency filed its appeal-related opening brief, challenging Judge Analisa Torres’ 2023 ruling that programmatic sales of XRP did not satisfy the third prong of the Howey Test.

XRP Price Trends: Appeal Uncertainty Lingers

On Thursday, February 27, XRP edged 0.05% higher after tumbling 5.39% on Wednesday, closing at $2.1981. XRP found support from the broader crypto market, which rose 0.26% to a total market cap of $2.76 trillion.

However, external market forces, including US tariffs, sentiment toward the US economy, and Fed policy, have contributed to the XRP’s slump from its January 16 high of $3.3999. Nevertheless, XRP’s price trajectory will hinge on two key factors moving forward:

• SEC Appeal Strategy: If the SEC drops its appeal, XRP could rally past its all-time high of $3.5505. Continued legal uncertainty, however, may push prices below $1.50.
• XRP-Spot ETF Developments: Approval of an XRP-spot ETF could attract institutional inflows, potentially driving XRP toward $5.

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

US Tariffs and Bitcoin Demand – What’s Next?

On February 27, US tariff developments weighed on market sentiment. A day earlier, President Trump announced plans to proceed with higher tariffs on Canada and Mexico while threatening levies on the EU.

Bitcoin (BTC) has fallen from a January 31 high of $105,933 to to below $85k. Economists expect higher tariffs will drive US import prices and inflation higher, potentially delaying Fed rate cuts. A more hawkish Fed stance could raise borrowing costs, impacting demand for risk assets.

Significantly, BTC’s recent slump could also cast doubt on Congress approving the Bitcoin Act. In late 2024, Senator Cynthia Lummis introduced the bill, proposing the US government acquire one million BTC over a five-year period, with a mandatory 20-year holding period.

However, lawmakers may raise concerns about price stability and vote against a US Strategic BTC Reserve (SBR). Fading optimism toward BTC becoming a strategic reserve asset has contributed to BTC’s failure to reclaim the $100k handle, with prices dropping below $85k.

Investors will likely need to see concrete progress toward a US SBR to shift the supply-demand balance in BTC’s favor.

US BTC-Spot ETF Market Registers Sizable Outflows

US BTC-spot ETFs have seen continued outflows, adding pressure on the market.

According to Farside Investors, ETF issuers reported net outflows of $754.6 million on February 26. Wednesday’s outflows extended the outflow streak to eight sessions. Issuers face the prospect of a ninth consecutive day of outflows on February 27, further pressuring BTC.

Market sentiment remains fragile. Crypto intelligence platform Santiment commented:

“Traders are showing a very high level of confidence that this dip is ‘the one to buy’, according to the spike in discussions across X, Reddit, Telegram, 4Chan, BitcoinTalk, and Farcaster. Ideally, we are waiting for this crowd enthusiasm to die down as a signal that enough pain has hit retail traders to justify a bounce. Markets move in the opposite direction of the crowd’s expectations, so look for declining optimism and shrinking levels of #buythedip calls as a bullish signal.”

Bitcoin Price Outlook: Key Scenarios

On February 27, BTC rose 0.63%, partially reversing Wednesday’s tariff-triggered 5.10% slide, closing at $84,657.

The upcoming US Personal Income and Outlays Report could change the narrative on Friday, February 28. Softer US inflation and lower personal income and spending readings may raise bets on multiple 2025 Fed rate cuts. A more dovish Fed stance could fuel demand for risk assets, including BTC.

• Bearish Scenario: Trade war jitters, stronger US economic data, Fed hawkishness, and resistance to a US Strategic Bitcoin Reserve (SBR) may send BTC below $80,000.
• Bullish Scenario: Easing trade tensions, softer US inflation, dovish Fed signals, and SBR progress could push BTC toward its record high of $109,312.

Market Outlook: Key Catalysts to Watch

Regulatory and macroeconomic developments will influence the next market move. Investors should closely monitor:

1. The SEC’s decision on its Ripple appeal.
2. US tariff policies and inflation trends.
3. US economic data and Fed policy shifts.
4. Progress on a US Strategic Bitcoin Reserve.
5. BTC-spot ETF developments and institutional activity.

If the SEC drops its Ripple appeal, it could ignite a broader crypto rally. Meanwhile, uncertainty around a US Bitcoin Reserve remains a wildcard for institutional adoption.

Stay updated with our latest insights here.