Ripple's legal battle escalates! The Chief Legal Officer sends a letter to the Senate criticizing the SEC's overreach in regulation. The SEC's closed-door meeting may determine the fate of the XRP appeal.

Stuart Alderoty, Ripple's chief legal officer (Ripple) Ripple, sent a letter to Senate Banking Committee Chairman Tim Scott sharply criticizing the draft Digital Asset Market Structure Act for giving the SEC excessive regulatory powers, which could exacerbate industry uncertainty. At the same time, the SEC will hold a closed-door meeting on August 7, and the market expects that the committee may vote to withdraw its appeal against the "XRP programmatic sale of non-securities" ruling, which will be a key precondition for the approval of XRP spot ETFs. XRP fell 3.58% yesterday to close at $2.9632 as the regulatory game heats up, and Bitcoin falls to $114,136 due to sharp outflows from spot ETFs. On the macro front, the US ISM services PMI unexpectedly fell to 50.1 in July, triggering recession fears, and the total market capitalization of the crypto market fell back to $3.67 trillion.

【XRP blasts the regulatory draft, highlighting the risks of SEC's expanded authority】 XRP Chief Legal Officer Stuart Alderoty submitted core questions to the Senate Banking Committee:

• Increased Regulatory Ambiguity: The bill draft creates more confusion in defining the SEC's jurisdiction over digital assets, bringing most tokens and projects under SEC oversight, even if their sales or activities fall outside traditional regulatory boundaries.
• "Definition of Risks for 'Ancillary Assets': The current 'ancillary assets' provisions lack an objective legal termination point, leading market participants to rely on the SEC's discretion to terminate regulation. Changes in administration may result in abrupt shifts in enforcement priorities and interpretative standards.
• Hindrance to Industry Reflow: The SEC's potential overreach in regulation may reverse the progress of attracting crypto companies back to the U.S., which runs counter to the original legislative intent.

This letter points directly to the core flaws of the legislation, highlighting the fundamental differences between the crypto industry and regulatory agencies.

[SEC Closed-Door Meeting Countdown: XRP Appeal's Fate Reaches a Turning Point] August 7 SEC closed-door meeting becomes the focus of the market:

• This meeting is the sixth closed-door meeting after Judge Analisa Torres rejected the motion for settlement from both parties.
• Investors strongly expect the committee to vote on the appeal to withdraw the ruling on XRP programmatic sales. The SEC needs to submit a case status report to the federal appeals court by August 15.
• Key Impact Chain: If the appeal is withdrawn → Clear the legal uncertainty of XRP → Accelerate the approval of the XRP Spot ETF → Unlock tens of billions of dollars in institutional funds to enter.

【XRP Price Game: A Race Between Technical Aspects and Regulation】 XRP's short-term trend is constrained by multiple factors:

• Key Technical Levels:
  • Upward Path: Breaking through the $3 level can challenge the $3.2 resistance → After breaking, the target is $3.3302 (July 28 high) → Historical high $3.6606.
  • Downside Risk: A fall below $2.9184 (low on August 5) may test the 50-day exponential moving average → If it fails to hold, it will challenge $2.7254 (low on August 3).
• Core Catalyst Matrix:
  • SEC appeal voting results
  • XRP Spot ETF approval progress
  • XRP American Bank License Application
  • New developments in SWIFT cooperation
  • Amendments to the "Digital Asset Market Structure Bill"

【Bitcoin Under Pressure as ETF Fund Outflows Combine with Recession Worries】 Bitcoin is weakening synchronously, facing dual pressure from macroeconomic factors and capital flow.

• ETF Fund Withdrawal: On August 4th, the net outflow of BTC Spot ETFs in the US was $323.5 million, with BlackRock's IBIT experiencing a daily outflow of $292.2 million (the largest since May 30).
• Economic Data Alert: The US ISM Services PMI unexpectedly fell to 50.1 in July (expected 51.5). The service sector accounts for 80% of GDP, and the data intensified fears of an economic recession, triggering a simultaneous decline in the crypto market and US stocks.
• Institutional Divergence Appears:
  • Short-term pressure: Continuous outflow of funds from ETF (net outflow of 1.2546 billion USD in August)
  • Long-term support: Institutions are buying the dip (As of the week ending August 3, 22 institutions increased their holdings by 33,411 BTC, up from 52,019 BTC the previous week)

Key levels for BTC long and short game:

• Bearish Scenario: Regulatory setbacks + Economic weakness + Hawkish Fed + ETF outflows → Break below the 50-day EMA → Test $110,000 support.
• Bullish Scenario: The "Clarity Act" receives bipartisan support + strong employment data + dovish signals + ETF inflows → Hits historical high of $122,055.

[Core Observation Checklist for This Week] Traders need to closely monitor the five major price drivers:

1. XRP Case Progress: SEC Closed Door Meeting Voting Results (August 7)
2. Legislative Dynamics: The CLARITY Act ( amendment direction
3. Economic Data: Initial jobless claims in the United States (August 8)
4. Federal Reserve Signals: Officials Speak with Dovish and Hawkish Stance
5. ETF Capital Flow: The net subscription/redemption trend of major products such as BlackRock IBIT.

Conclusion: The crypto market is at a critical intersection of regulatory games and macroeconomic conditions. The legal confrontation between XRP and the SEC has escalated to the legislative battlefield, and the direction of the Senate bill revisions will reshape the U.S. crypto regulatory framework. The SEC's closed-door meeting decision on the XRP appeal case could either ignite the XRP Spot ETF market or serve as a cooling valve. Although Bitcoin is suppressed by ETF fund outflows and concerns about economic recession, institutional-level buybacks at lower prices still build a solid defense. In the coming week, regulatory decisions, economic data, and ETF fund flows will resonate, determining whether BTC can hold the psychological level of $110,000 and whether XRP can launch an assault on the $3.2 resistance. Market volatility is expected to rise significantly, and investors are advised to enhance their risk control level.