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Five Things to Know in Crypto Next Week: SEC v Ripple and Hinman Docs

Key Insights:

  • It is a busy week ahead on the US economic calendar, with US inflation, the Fed interest rate decision, and FOMC projections in the spotlight.
  • The SEC will release unredacted versions of the infamous William Hinman speech-related docs that could force a settlement.
  • SEC activity, SEC v Binance, and SEC v Coinbase-related news will also move the dial.

US and China Economic Indicators

It is a big week ahead on the US economic calendar, among the five things to know in crypto. The US CPI Report will garner plenty of interest on Tuesday. Sticky inflation would fuel bets on a more hawkish Fed interest rate trajectory to tame inflation.

On Wednesday, wholesale inflation numbers will also move the dial before the Fed interest rate decision, the FOMC Economic Projections, and the Fed Chair Powell press conference. A surprise 25 basis point hike and a hawkish outlook would weigh.

However, investors should also consider US retail sales, Philly Fed Manufacturing Index, US Jobless Claims, and Michigan Consumer Sentiment numbers in the second half of the week.

With recessionary fears lingering, economic data from China will also need consideration. On Thursday, industrial production and retail sales figures will move the dial.

This morning, the crypto market cap was down $87.8 billion (-7.93%) to $1,019 billion, with the SEC causing Binance US to morph into a crypto-only platform.

Crypto Market sees deep red on SEC moves

Crypto Market Cap 110623 Weekly Chart

XRP v SEC – William Hinman Speech Docs Out on June 13

On June 13, the SEC will release unredacted William Hinman speech-related documents. Since 2021, the SEC has attempted to shield the documents under the attorney-client privilege in at least seven motions. However, the Court denied the final SEC motion to seal the Hinman speech-related documents in mid-May.

The unredacted speech-related documents could materially influence the SEC v Ripple case outcome, which has been ongoing since December 2020.

Significantly, the content could also pressure US lawmakers to reign in the SEC and reassess its regulation by enforcement mantra that has snared numerous platforms and culminated in charges against Binance US, Binance, Binance CEO CZ, and Coinbase (COIN).

Hints of an SEC-Ripple settlement would be a boon for XRP and the broader market.

XRP is down 5.70% to $0.50435 for the week, with the SEC and Binance-related news weighing.

XRP fares better than the broader crypto market.

XRPUSD 110623 Weekly Chart

Binance v SEC Updates to Garner Interest in a Busy Week Ahead

SEC v Binance-related news will remain a focal point in the week ahead. After the SEC charged Binance US, Binance, and Binance CEO CZ, the SEC filed a motion to freeze the assets of Binance US.

The motion was likely to prevent the movement of assets overseas. However, investors also suffered, with the crypto market hitting reverse in response to the news. Binance US responded to the SEC moves, announcing the suspension of US Dollar deposits and the planned pause of US Dollar withdrawals.

While Binance US will remain a going concern, morphing into a crypto-only exchange, updates from the SEC v Binance case and related chatter will move the dial.

Binance coin (BNB) is down 22.45% to $236.6 this week, with BNB sliding to a 2023 low of $230 on Saturday.

BNB not the worse performer despite the SEC charges.

BNBUSD 110623 Weekly Chart

Coinbase v SEC News to Test US Trading Platform Crypto Offerings

While the SEC v Binance case will likely instill greater fear, investors should consider the ramifications of the SEC case against Coinbase (COIN).

On Friday, Robinhood (HOOD) delisted cardano (ADA), polygon (MATIC), and solana (SOL). The move came in response to the SEC charges against Coinbase. Significantly, the delisted cryptos tumbled in response to the news. For the current week, ADA is down 29.89%, with MATIC and SOL seeing losses of 32.90% and 28.81%, respectively.

The delisting of other cryptos by leading exchanges would deliver a further blow to the broader crypto market.

US Lawmakers on Both Sides of the Aisle Need to Find Common Ground

This month, the Republican side of the aisle took steps to deliver regulatory clarity. The US digital asset space continues to reel from the lack of a regulatory framework and SEC regulation by enforcement.

While the William Hinman speech-related documents could incentivize the US administration to revisit the freedom the SEC enjoys, discussions on the Digital Asset Market Structure Draft Bill would provide hope of a shift in the regulatory landscape.

However, the crypto market would need bipartisan support for the Bill to progress.

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