Ripple stablecoin unlikely to invite legal trouble from SEC, says Ripple executive
- Ripple stablecoin RLUSD will be launched with a compliance first approach, unlikely to face legal trouble, says SVP.
- Markus Infanger of Ripple says stablecoin aims to capture market share, expected to grow bigger in the coming years.
- SEC vs. Ripple lawsuit remains unresolved, XRP traders await settlement.
- XRP hovers around $0.60 after losing key psychological support on Tuesday.
Ripple (XRP), the native token of the XRP Ledger slipped under $0.60, a key psychological support for the altcoin. The two key market movers are the Securities & Exchange Commission’s (SEC) lawsuit against Ripple and the upcoming stablecoin RealUSD (RLUSD).
XRP trades at $0.5956 at the time of writing.
Daily digest market movers: Ripple stablecoin unlikely to face legal issues from the SEC
- Ripple stablecoin RLUSD is scheduled to launch towards the end of 2024, per the payment firm’s announcement.
- Markus Infanger, SVP of RippleX, commented on Ripple’s stablecoin and whether the asset could face legal woes with the SEC.
- Infanger believes it is unlikely that RLUSD will face legal concerns with the SEC, since the payment remittance firm has taken a compliance first approach to the stablecoin.
- Infanger slammed the SEC for “stifling innovation” in the US, in his interview with the Thinking Crypto YouTube channel.
Ripple's Game Changing Stablecoin RLUSD & XRP ETF!
— Tony Edward (Thinking Crypto Podcast) (@ThinkingCrypto1) July 23, 2024
WATCH ▶️ https://t.co/VKqPGDoCHm
Markus Infanger, SVP of RippleX, joined me to discuss the upcoming launch of Ripple's RLUSD.
Topics:
- Markus' background in TradFi
- #Ripple's new Stablecoin $RLUSD
- How #RLUSD will compete… pic.twitter.com/35qdrlYNma
- The SEC vs. Ripple lawsuit awaits a final ruling. XRP traders await settlement in the legal battle between the regulator and the cross-border remittance firm.
- The news of a closed-door meeting at the SEC has sparked rumors of settlement, the meeting is scheduled for July 25.
- XRP traders have their eyes peeled for signs of a resolution in the Ripple lawsuit, since it could have a longstanding impact on cryptocurrencies.
Technical analysis: XRP loses key psychological support
Ripple price is currently in an upward trend that started on July 8. The altcoin trades at $0.5963, after Ripple lost psychological support at $0.60. XRP could pullback to the 50% Fibonacci level of the decline from the March 11 top of $0.7440 and the July 5 low of $0.3423, at $0.5632.
XRP could find support in the Fair Value Gap (FVG) between $0.5404 and $0.5783, as seen in the XRP/USDT daily chart.
XRP could sweep liquidity at $0.5632 and attempt a comeback above psychological support at $0.60, to thenrally to $0.6666, the 78.6% Fibonacci retracement level.
XRP/USDT daily chart
A daily candlestick close above $0.60 could invalidate the bearish thesis.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
