Ripple issues USD-backed stablecoin to bring more liquidity to the XRP Ledger
- XRP price fell to a monthly low of $0.5623 on Thursday, extending losses for a fourth consecutive session.
- Ripple’s Chief Legal Officer Stuart Alderoty condemned the SEC Director’s statements on the lawsuit.
- SEC Director Gurbir Grewal lashed out at crypto firms for non-compliance in an event by the Practicing Law Institute.
Ripple (XRP) price is in a downward trend this week, hitting monthly lows at $0.5623 on Thursday, amid a broader correction in major cryptocurrency assets and as the legal battle between Ripple and the US Securities and Exchange Commission (SEC) keeps both sides confronted about what should be the status of crypto assets in financial markets.
Ripple’s Chief Legal Officer (CLO) Stuart Alderoty on Thursday called out SEC’s director Gurbir Grewal for his comments over crypto firms and their non-compliance. The director commented on the regulator’s lawsuits against cryptocurrency entities like Ripple at a two-day event by the Practicing Law Institute.
Daily digest market movers: Ripple CLO calls out SEC Director for comments on crypto lawsuits
- Ripple announced the launch of a USD-backed stablecoin on April 4, in a move aimed at driving higher utility and liquidity to the XRPLedger.
- Ripple's stablecoin will be 100% backed by short-term US government treasuries, US dollar deposits and cash equivalents.
- The stablecoin will be available on the XRPLedger and Ethereum blockchain initially, and there are plans to expend to other blockchains and DeFi protocols, apps, in the future.
- SEC Director Gurbir Grewal participated on Wednesday in a two-day event by the Practicing Law Institute, where the executive gave a fifteen minute talk on the crypto industry and his thoughts on regulation. During his speech, Grewal called out cryptocurrency firms for “significant non-compliance” and addressed the SEC’s critiques.
- SEC’s top enforcer said the crypto industry has made “creative attempts to avoid the regulator’s jurisdiction” and claimed that the US financial regulator makes up the rules as they go.
- Grewal’s comments were met with Stuart Alderoty’s response on X. The Ripple CLO called out Grewal for ignoring the SEC’s “gross abuse of power” and slammed the top enforcer for stating that the agency provides clear guidance.
On the substance, he cites one portion of the Ripple ruling but ignores that the SEC lost or gave up on most of its claims in the case, including the Court’s rejection of the SEC’s assertion that XRP was in and of itself a security.
— Stuart Alderoty (@s_alderoty) April 3, 2024
- Ripple has been embroiled in a legal battle with the SEC since 2020. The next key deadline in the lawsuit is April 22, when the payment remittance firm is expected to file their opposing brief to the SEC’s remedies-related filing.
- On March 26, the SEC’s filing asked the judge of the case to impose a nearly $2 billion fine against Ripple.
Technical analysis: XRP price likely bottomed out
XRP price falls for a fourth consecutive day, dropping to a low of $0.5623 on Thursday. The altcoin’s Relative Strength Index (RSI) on the 4-hour chart has dropped to 28.62 early on Thursday before recovering to 30.91.
The RSI drop to the oversold region is typically considered a buy signal for sidelined traders. In other words, the current price could offer traders an opportunity to “buy the dip” before the altcoin begins its recovery.
XRP price could make a comeback to the Fair Value Gap (FVG) between $0.6030 and $0.6103, on the 4-hour chart. Once this inefficiency is filled, the altcoin could see another correction or a liquidity sweep below $0.5678, a level that held as support throughout March.
XRP/USDT 4-hour chart
In the downside scenario, XRP price could see a daily candlestick close below the $0.5623 low and continue to decline toward $0.5386, a level that was respected as support throughout March.
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.
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.
