Is the SEC About to Shift on XRP’s Security Status?

Gary Gensler testified for over four hours before the US Senate’s Committee on Housing Banking and Urban Affairs on Tuesday, April 18, 2023.

He was criticized for his agency, SEC’s crackdown by Republicans in the Committee. Interestingly he declined to comment on whether XRP was a security or not, showing a possible change in stance in the face of a possible legal defeat.

Let us get into the details of the hearing and understand its impact on the case of Ripple vs. SEC.

Gensler Endures Four-Hour Marathon Hearing

In a four-hour marathon hearing, SEC Chief Gary Gensler responded to several questions from members of the committee, which consisted of Republicans and Democrats.

The SEC Chairperson, Gary Gensler, replied to many questions, comments, and criticisms.

When asked why his agency was carrying out a crackdown on new-age technology businesses, he stated that these companies must comply with the law, and his agency will take action against those who do not

The committee said that SEC’s mandate was to regulate traditional markets and was ill-suited for cryptocurrencies. Gensler later responded to the committee, explaining that many companies offer exchange services, broker-dealer services, and clearing of cryptocurrencies, making their actions similar to those of an exchange. As a result, they should be subject to compliance

The committee further commented that due to the actions of the SEC, the USA was moving far from being a crypto and technology innovation hub. Committee Chairperson McHenry expressed that the SEC’s approach to regulation by force is inadequate and unsustainable.

Gensler later declined to discuss its investigations into the fall of FTX. Interestingly, several lawmakers and politicians allegedly received donations from the FTX just a few months before its collapse.

During one of the questions being asked about whether Ether(ETH) is a security or not, Gensler did not answer that question clearly. He declined to classify XRP as a security, despite the SEC’s aggressive stance in its case against Ripple Labs.

Takeaways for Ripple(XRP): Possible Shift in SEC’s Stance

It is evident that the SEC will continue to pursue cases against Ripple and other entities, including Tron. However, it might expect a relief in the courts of law because, till now, the SEC has not been able to prove any aspect of XRP being a security.

However, it appears that Gensler and possibly the SEC have altered their stance on XRP’s classification as a security. This is because when he was asked directly by Mr. Warren Davidson whether XRP was a security or not, he refused to give a yes or no answer and replied that the matter was in the courts.

"Is ETH a Security? Is XRP a Security?"

Mr. Davidson & Gary Gensler – ENJOY!

Great direct questioning to get to the point. Once again Gary stays indecisive to keep regs indecisive. pic.twitter.com/DzVilrFlwZ

— Mrlevelup (@mrlevelup) April 18, 2023

XRP can possibly break multiple price records in the past if it wins the case against SEC. It is not too optimistic to expect XRP at $1 within the first 24 hours of its winning. Further, along with its innovations such as liquidity hub, land digitization, and many other utilities, XRP price would increase multifold in value.

XRP Price Analysis

XRP has failed to break the resistance near $0.52-$0.54 twice in the past month. Further, it has wiped the last month of gains within a couple of hours.

This confirms that $0.54 is a major resistance. Also, we can see from the daily charts that:

1. RSI is falling sharply and is expected to continue falling.
2. MACD is showing a negative crossover.
3. Trading volumes are very low.

However, XRP’s price is still above its 50-DMA of $0.44. This confirms that the markets are still in a bullish mode.

At present, traders are advised to refrain from buying or selling and wait for further confirmations. If XRP crosses $0.54, it should be considered bullish; if it crosses $0.44 on the downside, this should be considered bearish.

Disclaimer: Voice Of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.