- Ripple ongoing legal battle with the SEC pushed XRP below $2.20, with uncertainty around a settlement weighing heavily on investor sentiment.
- Meanwhile, Bitcoin dropped to $104K amid renewed U.S.-China trade tensions and rising ETF outflows.
Ripple Legal Woes Intensify, XRP Drops Below $2.20
Ripple’s legal uncertainty deepened this week, sending XRP tumbling to $2.1337 on May 30—its lowest point since May 8. The SEC’s silence during its final closed-door meeting for 2025 added pressure on XRP, with traders bracing for unresolved litigation outcomes. Anticipated court filings and a potential settlement with the SEC loom large. Without resolution, both sides may reignite their appeals, dragging the case further into legal limbo.
Pro-crypto attorney Bill Morgan shared a court filing suggesting the introduction of new evidence critical to resolving the decade-long dispute. Meanwhile, investors were left disappointed after Judge Analisa Torres rejected the SEC’s May 15 request for an indicative ruling, citing procedural flaws.
This setback crushed hopes of a swift settlement, causing XRP to slide from a May 12 high of $2.6553. Analysts now suggest XRP must breach $2.50 again to regain bullish momentum. Otherwise, further legal complications may test the $2 support level.
Spot ETF Hopes and Legal Clarity Key to XRP’s Future
A final settlement could open the door for XRP-spot ETF approvals—crucial for long-term institutional investment. However, if the SEC continues its appeal against the ruling on programmatic XRP sales, ETF prospects may dim. Judge Torres previously ruled such sales did not meet the criteria of the Howey Test, a legal benchmark for identifying securities.
Ripple’s legal path forward includes a potential cross-appeal if penalties are not reduced or injunctions lifted. All eyes now turn to the June 16 deadline for the SEC’s status report, which may determine whether a resolution is truly on the horizon.
BTC Slumps to $104K Amid Tariff Shock and Weak U.S. Data
While XRP’s decline was driven by legal uncertainty, BTC suffered from economic and geopolitical fears. On May 29, the U.S. Court of Appeals reinstated Trump-era tariffs, sparking fears of renewed U.S.-China trade tensions. Combined with rising jobless claims and falling corporate profits, Bitcoin slid to $104,726.
Adding to the bearish sentiment, U.S. BTC-spot ETFs saw nearly $472 million in outflows. Fidelity, Grayscale, and ARK all reported heavy losses.
Outlook: Legal and Macro Risks Dictate Market Path
Investors should monitor SEC vs. Ripple developments, U.S. inflation data, ETF flows, and crypto legislation like the Bitcoin Act and Market Structure Bill. Both XRP and BTC remain at critical junctures—awaiting either relief or further declines.
