The cryptocurrency market witnessed significant developments on December 13, 2024, with XRP and Bitcoin making notable gains amid regulatory and strategic news. The latest updates include the potential shift in SEC leadership and discussions about a U.S. Strategic Bitcoin Reserve, both of which have far-reaching implications for the crypto industry.
SEC Leadership Changes and Ripple Case Impact
One of the pivotal events is the uncertainty surrounding the renomination of SEC Commissioner Caroline Crenshaw. With only five days left before Congress adjourns for the year, the Senate Banking Committee and full Senate face a tight schedule to vote on her renomination. Fox Business journalist Eleanor Terrett highlighted the time constraints, noting that a committee vote requires three days’ notice. If the renomination process stalls, President-elect Trump could nominate a new commissioner, potentially altering the SEC’s regulatory approach towards cryptocurrencies.
Crenshaw’s renomination is particularly significant for Ripple (XRP). Should she be reappointed, she might push forward the appeal against Ripple’s 2023 Summary Judgment and August’s Final Judgment before the January 15 deadline. The SEC is contesting Judge Analisa Torres’ ruling that programmatic sales of XRP do not satisfy the third prong of the Howey Test, a critical component in determining whether a transaction qualifies as a security. A withdrawal of the appeal could set a major legal precedent, impacting not just Ripple but also other crypto exchanges like Coinbase and Binance.
Ripple’s Price Reaction
Following these developments, XRP experienced a notable price increase. On December 13, XRP rallied by 3.60%, closing at $2.4221 and outperforming the broader crypto market’s 1.20% gain. Market optimism surrounding Crenshaw’s potential departure and the withdrawal of the appeal drove XRP demand. However, if the SEC proceeds with its appeal, XRP could face downward pressure, potentially dropping towards $1. Conversely, a withdrawal could propel XRP past its January 2018 all-time high of $3.5505.
Bitcoin’s Record High and Strategic Bitcoin Reserve
Bitcoin (BTC) also saw a substantial price surge, reaching $101K amid speculation about the establishment of a U.S. Strategic Bitcoin Reserve (SBR). Republican Senator Cynthia Lummis, a prominent crypto advocate, discussed the SBR with incoming Treasury Secretary Scott Bessent. The proposed Bitcoin Act of 2024 aims for the U.S. government to accumulate one billion BTC over five years, potentially halving U.S. debt by 2045. An SBR would position the U.S. government as a major BTC buyer and holder, significantly influencing market dynamics.
BTC-Spot ETF Inflows
The anticipation of a U.S. SBR and Trump’s pro-crypto stance has fueled demand for BTC-spot ETFs. On December 13, the U.S. BTC-spot ETF market recorded net inflows of $35.9 million, marking the 12th consecutive session of inflows. Significant contributions came from Fidelity Wise Origin Bitcoin Fund (FBTC), Bitwise Bitcoin ETF (BITB), and ARK 21Shares Bitcoin ETF (ARKB), despite Grayscale Bitcoin Trust (GBTC) registering net outflows of $106 million.
Market Outlook
Both XRP and Bitcoin are at crucial junctures. XRP’s price trajectory depends heavily on the SEC’s decision regarding the Ripple appeal, while Bitcoin’s performance hinges on ETF inflows, SBR-related news, and broader macroeconomic factors. As these events unfold, market participants should stay informed with the latest expert analyses and updates.
Stay tuned for more insights into the evolving crypto markets and regulatory landscape.
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