# The Republican-Led SEC, Ripple Case Insights, and the Future of XRP-Spot ETFs
As the landscape of financial regulation continues to evolve, the intersection of politics and the cryptocurrency space becomes increasingly relevant. Here at **Extreme Investor Network**, we provide you with the in-depth analysis you need to navigate these complexities. Today, we delve into the implications of a Republican-controlled SEC, the ongoing Ripple case, and the potential emergence of XRP-spot ETFs.
## The Changing Tides at the SEC
With the Republican Party gaining control of the SEC, there may be a notable pivot towards prioritizing regulation over strict enforcement. This change could include withdrawing appeals against key rulings from the SEC’s case against Ripple Labs—a decision that could solidify the legal standing of XRP in the United States market.
In July 2023, Judge Analisa Torres made a pivotal ruling that the programmatic sales of XRP did not meet the criteria of the third prong of the Howey Test, a crucial legal framework for determining what constitutes a security. This ruling could serve as a linchpin for the digital asset space, offering a clearer path for XRP amid a maze of regulatory uncertainty.
## What Lies Ahead for XRP-Spot ETFs?
The SEC is scheduled to file its appeal-related opening brief by **January 15, 2025**. If the SEC chooses to withdraw its appeal, this move could usher in a robust market for XRP-spot ETFs. Numerous issuers, including Bitwise Invest, Canary Funds, Grayscale, and WisdomTree, have already filed applications for ETFs that either invest exclusively in XRP or include it in a broader crypto basket. With the ruling on programmatic sales, the SEC would have little basis to deny these applications, as XRP has been deemed not a security.
Interestingly, the SEC has so far shown reluctance to approve spot ETFs for assets like Solana (SOL), raising the stakes and intrigue around XRP. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas recently highlighted this discrepancy, hinting that Solana ETFs may struggle while XRP has a fighting chance.
> **“Nice scoop. Solana ETFs getting told to take a hike by the Genz-led SEC… Look for them to just refile after the new Atkins regime takes over.”** – Eric Balchunas
## The Ripple Appeal Dilemma
Chairman Gary Gensler’s recent maneuvers—including bolstering the SEC’s crypto legal team and taking action in the Binance case—indicate that the agency might still plan to pursue its appeal in the Ripple lawsuit. The question remains: will the incoming SEC chair advocate for withdrawal, or will the commission’s formal voting process stymie such a move?
Bill Morgan, a pro-crypto attorney, cautioned against diving into premature optimism about the SEC’s potential inaction:
> **“I hope no one is getting too excited about the SEC not filing its brief in the appeal on 15 January 2025.”** – Bill Morgan
## The Price Dynamics of XRP: What to Watch For
As the regulatory atmosphere shifts, the price of XRP remains tethered to the outcomes of both the SEC appeal and the potential for XRP-spot ETFs. Should the SEC withdraw its appeal, XRP could aim for a breakout above its December 3 high of **$2.9070**, targeting the historic high of **$3.5505**. Conversely, if the SEC continues its appeal and rejects the XRP ETF proposal, we could see XRP tumble below the **$2.00** threshold.
### Current Price Trends
XRP is currently trading above the **50-day** and **200-day EMAs**, signaling a bullish trend. If it breaks above **$2.9070**, the bullish momentum could carry it back to the $3 mark, setting eyes on the all-time high established in January 2018. However, caution is warranted; a decline below **$2.50** may signal further weakness, potentially pushing XRP towards the **$1.50** level, particularly if regulatory apprehensions loom large.
With a **14-day RSI reading of 76.09**, XRP shows signs of being in overbought territory, indicating that selling pressure may intensify as it approaches the critical levels mentioned above.
### Conclusion
While navigating the waters of regulatory changes can be tumultuous, understanding the implications of the SEC’s actions and potential XRP-spot ETFs is vital for informed investing. Keep an eye on our analyses at **Extreme Investor Network** as we continue to provide timely updates and insights on this dynamic cryptocurrency landscape.
Stay tuned, stay informed, and, as always, invest wisely!