On Monday, April 1, the BTC-spot ETF market saw net outflows of $86 million. BTC-spot ETF market flow data for Tuesday, April 2, could inflict more losses. Net outflows from Grayscale Bitcoin Trust and ARK 21Shares Bitcoin ETF put iShares Bitcoin Trust in the driving seat to prevent a second day of net outflows.
The current crypto market retreat coincided with increased uncertainty about the SEC vs. Ripple case.
SEC vs. Ripple: Programmatic Sales and an SEC Appeal
There were no SEC vs. Ripple case-related updates to affect XRP price trends. Nonetheless, SEC plans to appeal against the Programmatic Sales of XRP ruling remains an XRP headwind.
Court rulings in the SEC vs. Terraform Labs and Coinbase cases have likely ended hopes of a settlement in the SEC vs. Ripple case.
- SEC vs. Terraform Labs: Judge Rakoff ruled that Terraform Labs and founder Do Kwon breached US securities laws for failing to register Luna and TerraUSD as securities.
- SEC vs. Coinbase: Judge Failla partially granted the Coinbase (COIN) Motion to Dismiss (MTD). But Judge Failla did not grant the MTD relating to Coinbase operating as an unregistered securities exchange.
The two rulings put the SEC on better footing vis-à-vis appealing against the Programmatic Sales ruling. If the SEC can overturn the Programmatic Sales ruling, the US crypto market could face a difficult transition period. SEC registration requirements could force more crypto firms overseas and significantly impact US investor access to the crypto market.
The SEC must wait until the conclusion of the SEC vs. Ripple case to appeal against court rulings.
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