- Ripple proponents have called out the SEC for dropping its investigation into Ethereum.
- Consensys, an Ethereum developer, shared the news of the regulator’s response to a letter.
- XRP is back under the $0.50 resistance in response to Ethereum’s free pass.
XRP trades back below $0.50 on Wednesday as Ripple (XRP) proponents like attorney Bill Morgan have lashed out at the Securities and Exchange Commission (SEC) for what is being considered a “second free pass” for Ethereum.
Ethereum developer Consensys announced on Wednesday in its official X account that the SEC is putting an end to its investigation into the second-largest cryptocurrency. The developer had enquired the status of the investigation through a letter sent to the regulator and received a response.
Daily digest market movers: SEC free pass to Ethereum angers XRP community
- The SEC’s decision to end the investigation into Ethereum has caused a stir in the Ripple community.
- The US financial regulator is embroiled in a legal battle with the cross-border payment remittance firm since 2020, alleging that Ripple sold unregistered securities through the XRP token. The SEC demands the court to impose $2 billion in penalties for Ripple.
- Ripple attempted to draw parallels between other crypto litigation, like the SEC’s lawsuit against Terraform Labs and its founders, to reduce the amount of the fine. This attempt was rejected by the regulator, but it opened the door to a significantly smaller penalty of around $102 million.
- For years, the XRP holder community has slammed the SEC for what is deemed “unequal” treatment of Ripple compared to its peers. Community members have criticized the agency for bringing a lawsuit against Ripple while Ethereum gets a “free pass.” History repeated itself with the SEC pulling a stop on its investigation into Ether.
- While the closing of the investigation marks a win for the Ethereum holder community, Ripple proponent attorney Bill Morgan has slammed the SEC for different treatment of Ethereum and Ripple for the second time in six years.
Technical analysis: XRP plunges below $0.50 yet again
Ripple price has declined steadily since mid-March. The altcoin closed above the sticky resistance at $0.50 for the first time in ten days on Monday, but it is back under this key level following the news of SEC dropping its investigation into Ethereum.
In case of further selling pressure, XRP risks a 5% decline to the April 19 low of $0.4665, a key support level for Ripple.
XRP/USDT daily chart
However, if XRP sees a daily candlestick close above $0.5330, the resistance and June 5 high, it could invalidate the bearish thesis. In such a scenario, the token could climb towards the Fair Value Gap extending between $0.5491 and $0.6029.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
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