SEC Appeal Impacts XRP While US BTC-Spot Inflows Surge – In Crypto This Week

US Presidential Election Fuels Crypto Demand

On Monday, October 14, US Vice President Kamala Harris outlined her Opportunity Agenda for Black Men, giving assurances to crypto investors. The Agenda stated,

“Supporting a regulatory framework for cryptocurrency and other digital assets so Black men who invest in and own these assets are protected. She will make sure owners and investors of digital assets benefit from a regulatory framework so that Black men and others who participate in this market are protected.”

A regulatory framework promoting innovation while protecting retail investors would be positive for the crypto space. Significantly, regulatory clarity could end the SEC’s enforcement-driven regulatory approach.

A Kamala Harris win could introduce crypto regulations. Conversely, a Donald Trump victory could lead to SEC Chair Gary Gensler’s dismissal. In July 2024, Trump famously said he would fire Gary Gensler on Day 1 if re-elected.

According to the betting platform Polymarket, Trump’s odds of winning the US presidential election increased from 54.7% (October 14) to 59.9% (October 19).

The polls and betting odds may draw more investor scrutiny as the US Presidential Election date looms. Despite Kamala Harris’s recent support for crypto, Trump remains the crypto market’s preferred choice.

SEC Appeal in Ripple Case Adds Uncertainty to XRP

On October 17, the Securities and Exchange Commission (SEC) filed the Civil Appeal Pre-Argument Statement (Form C) and addenda in the SEC vs. Ripple case.

Speculation that the SEC missed an October 16 deadline briefly raised hopes that the SEC could not pursue the appeal. However, pro-crypto lawyers addressed the uncertainty, stating that appellate courts give federal agencies a lot of leeway vis-à-vis deadlines for court filings.

Notably, the SEC is challenging the following rulings:

• Programmatic Sales of XRP ruling.
• Brad Garlinghouse and Chris Larsen aiding and abetting.
• Chris Larsen and Brad Garlinghouse’s offers and sales of XRP.
• XRP distributions.

The Programmatic Sales of XRP ruling is the most significant for XRP and the broader crypto market. A reversal could lead to US crypto exchanges delisting XRP, adversely impacting adoption and XRP price trends. Uncertainty about the appeal left XRP trailing the broader crypto market. From Monday, October 14, to Saturday, October 19, XRP gained 2.76% to $0.5467.