Recent developments in the ongoing SEC-Ripple saga have brought renewed attention to potential conflicts of interest within the Securities and Exchange Commission (SEC), with possible implications for XRP's price trajectory.
US whistleblower organization Empower Oversight has filed a lawsuit against the SEC, demanding the release of findings from an Office of Inspector General (OIG) investigation into alleged crypto conflicts of interest. The investigation centers on former SEC Director William Hinman, who famously declared in 2018 that Bitcoin and Ethereum were not securities.
The controversy stems from Hinman's continued ties to his former employer, Simpson Thacher, a law firm involved with Enterprise Ethereum, while serving at the SEC. Documents revealed that Hinman maintained contact with Simpson Thacher employees despite warnings from the SEC Ethics Division.
Legal expert John E. Deaton highlighted that multiple SEC divisions reviewed Hinman's Ethereum speech draft, notably excluding the Ethics department. The SEC's repeated attempts to shield these documents under attorney-client privilege ultimately failed during the Ripple case proceedings.
Market speculation suggests the SEC might withdraw its appeal of Judge Torres' July 2023 ruling, which determined that Programmatic Sales of XRP did not meet the Howey Test criteria for security classification. Such a withdrawal could potentially clear the path for XRP-spot ETF approvals.
The price implications remain closely tied to regulatory developments. XRP currently trades at $2.4196, maintaining a position above the 200-day Exponential Moving Average while sitting below the 50-day EMA. A potential SEC appeal withdrawal could push XRP beyond its previous high of $3.5505, while continued legal pressure might drive prices toward $1.50.
The broader market context includes macroeconomic factors, with proposed US tariff policies adding uncertainty. XRP has experienced volatility, dropping from $3.1341 to $1.7938 in early February before showing signs of recovery.
As pressure mounts for transparency regarding the OIG investigation findings, the crypto community watches closely for signals of the SEC's next moves, which could substantially impact XRP's market performance.