SEC Coinbase Mandamus Filing Cranks Up Pressure to Resolve Ripple Case
Investors eagerly awaiting updates on the SEC vs. Ripple case were left hanging during the weekend, with no new developments to consider. Consequently, the focus shifted to the ongoing SEC vs. Coinbase (COIN) saga.
On Friday, Coinbase took the legal route to compel the SEC to respond to its rulemaking petition from 2022. By filing a mandamus, Coinbase requested a prompt reply from the SEC within 30 days.
The rulemaking petition urges the SEC to provide clarity on digital assets and specify which products it deems as securities. It is worth noting that despite not responding to any rulemaking petitions since 2022, the SEC still charged Coinbase in June 2023.
Among the charges brought against Coinbase are allegations of operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged the company for offering and selling securities without proper registration in connection with its staking-as-a-service program.
The mandamus filing comes at a time when the crypto market eagerly awaits a court ruling on Coinbase’s motion to dismiss (MTD). This ruling is perceived as crucial by the crypto community, as it could have far-reaching implications not only for the US crypto market but also for the SEC vs. Ripple case.
John E. Deaton, the founder of CryptoLaw US and an amicus curiae attorney, has weighed in on the Coinbase MTD ruling. Deaton believes that the only chance of a settlement in the SEC vs. Ripple case rests on the court’s ruling on the MTD.
Deaton explained the potential need for the SEC to settle, stating,
I doubt the Solicitor General would allow an appeal in that scenario, one that could reach the Supreme Court, allowing for the High Court to strip away not only the SEC’s power, but all other federal agencies as well.
In the XRP market, the cryptocurrency remained below the 50-day and 200-day EMAs, confirming bearish price signals. Notably, the 50-day EMA crossed below the 200-day EMA, indicating further downward pressure.
A potential return to $0.4850 could support a move toward the $0.4700 support level. Market sentiment regarding the SEC vs. Ripple case and news related to Coinbase’s legal battle will influence buyer interest.
On the other hand, a rise above $0.50 could trigger a breakout from the $0.5042 resistance level, bringing the EMAs into play.
The 14-day RSI reading of 39.80 suggests the possibility of breaking below the $0.4700 support level before entering oversold territory.
Turning to the 4-hourly chart, XRP remains below the 50-day and 200-day EMAs, maintaining the bearish outlook. A breakout from the 50-day EMA could lead to a test of the $0.5042 resistance level and the 200-day EMA.
However, a drop below $0.48 could see a move towards the $0.47 support level. The 4-hourly RSI reading is currently at 49.25, indicating the potential for a break below the $0.4700 support level before reaching oversold conditions.
Disclaimer: The opinions and viewpoints expressed in this article are those of the author and do not necessarily reflect the official policy or position of Nasdaq, Inc.
