Wyoming Senator Cynthia Lummis was one of five US Senators who expressed their concerns to SEC Chair Gary Gensler regarding the agency’s practices. In a letter co-signed by the Senators, they warned the SEC of potential scrutiny from lawmakers. This action was taken in response to the SEC filing a Motion to Dismiss charges against Debt Box.
The SEC’s decision to file the Motion to Dismiss came after the court urged the agency to justify why it should not face sanctions for providing false and misleading information. The scrutiny of the SEC’s activities has extended beyond the courts, with the Office of Inspector General (OIG) currently investigating potential conflicts of interest within the agency related to cryptocurrencies.
If the OIG investigation concludes that the SEC acted improperly, it could impact the agency’s plan to appeal the ruling on the Programmatic Sales of XRP. In July 2023, Judge Analisa Torres ruled that the programmatic sales of XRP did not meet the requirements of the Howey Test. Since then, the SEC has expressed its intention to appeal the ruling by filing a Motion for Interlocutory Appeal in August 2023.
A decision by the SEC to abandon their appeal of the Programmatic Sales ruling would be beneficial for XRP. The ongoing investigation by the OIG, along with the SEC’s legal battles related to cryptocurrencies, will certainly influence the price trends of XRP.
In terms of XRP price action, the cryptocurrency has remained above both the 50-day and 200-day EMAs, indicating a bullish trend. A breakout above the $0.62 level would give the bulls an opportunity to test the $0.6354 resistance level. Further upward movement could bring the Tuesday high of $0.6689 into play. However, a drop below the $0.60 level could signal a decline towards the $0.5835 support level.
Considering the ongoing OIG investigation, updates on SEC-related crypto cases, and market flows of BTC-spot ETF, it is crucial to take these factors into account when assessing XRP’s price movement.
On the 4-hourly chart, XRP has also maintained its position above the 50-day and 200-day EMAs, supporting the bullish trend. A return to the $0.62 level would reinforce the possibility of a move towards the $0.6354 resistance level. Conversely, a drop below the 50-day EMA would give the bears an opportunity to test the $0.5835 support level.
Based on the 4-hourly RSI reading of 47.95, it suggests that XRP could experience a decline below the $0.5835 support level before entering oversold territory.
In conclusion, Senator Cynthia Lummis and other US Senators have expressed their concerns to the SEC regarding its practices. The SEC’s Motion to Dismiss charges against Debt Box has prompted scrutiny, leading to an investigation by the Office of Inspector General. The outcome of this investigation could impact the SEC’s plans to appeal the ruling on the Programmatic Sales of XRP, which will greatly influence XRP’s price trends. Traders should closely monitor these developments as they assess XRP’s potential price movement.