Ripple (XRP) Surges After US Crypto Bill Approvals
Ripple’s XRP token experienced a significant surge, reaching a high of $3.66 before settling slightly at $3.46 on Friday. This rally followed the U.S. House of Representatives’ approval of three cryptocurrency bills on Thursday, boosting investor confidence in the cross-border money transfer token.
The approved bills include the U.S. GENIUS Act (Guidance Ensuring National Innovation and Ubiquitous Standards for Stablecoins Act), the Digital Asset Market Structure CLARITY Act, and the Anti-CBDC Act (Central Bank Digital Currency Anti-Surveillance State Act). These bills potentially pave the way for clearer cryptocurrency regulations in the United States.
XRP Poised for Further Gains After Key Crypto Bill Approvals
Ripple CEO Brad Garlinghouse praised the approval of the cryptocurrency bills, stating on X that the GENIUS Act “solidifies the U.S.’s future as a leader in truly innovative financial technology: stablecoins.”
In addition to XRP, Ripple issues RLUSD, a regulation-compliant stablecoin primarily designed for institutions. RLUSD ranks as the 16th largest stablecoin, boasting a market capitalization of $517 million.
The GENIUS Act is expected to establish a clear regulatory framework for stablecoins at both the federal and state levels, fostering innovation in digital financial technology within the U.S.
Ripple CTO Stuart Alderoty also celebrated the GENIUS Act’s passage, which now heads to President Donald Trump’s desk for signature. He noted that “at last, there is movement on clear, viable frameworks for crypto and stablecoins that will foster innovation and protect consumers.”
Ripple has been actively developing its stablecoin infrastructure, aiming to compete with the Global SWIFT system. In June, Garlinghouse suggested that the XRP Ledger (XRPL) could capture 14% of SWIFT’s liquidity, serving as a conduit between the traditional financial system and the digital asset economy.
Technical Outlook: XRP Could Extend Price Discovery Phase
XRP is currently trading around $3.44, showing a slight increase for the day. The token’s recent all-time high of $3.66 underscores growing demand from both retail and institutional investors.
A Golden Cross pattern on the daily chart was validated on July 11, when the 50-day Exponential Moving Average (EMA) crossed above the 100-day EMA, reinforcing bullish control.
Furthermore, a buy signal maintained by the Moving Average Convergence/Divergence (MACD) indicator since June 28 has strengthened risk sentiment, encouraging traders to increase their exposure.
A daily close above $3.50 could help determine the strength of the uptrend. If XRP breaks above the current all-time high of $3.66, a new price discovery phase could propel the token even higher.
Despite the surge to new all-time highs, spot market volume remains neutral, suggesting conditions are still favorable for XRP to extend its bullish leg to new levels, targeting $4.00 in the short term.
However, the extremely overbought Relative Strength Index (RSI) at 86 signals the possibility of a trend correction, especially if profit-taking activities increase, overshadowing demand. The previous all-time high at $3.40 serves as tentative support, but if broken, traders will look for support at $3.00, which was tested as resistance in early March, and $2.80, which was tested as support on Tuesday.
SEC vs. Ripple – Frequently Asked Questions
Is XRP a security?
According to a court ruling published on July 14, the answer depends on the transaction:
- For institutional investors or over-the-counter (OTC) sales, XRP is a security.
- For retail investors who purchased the token through programmatic sales on exchanges, on-demand liquidity services, and other platforms, XRP is not a security.
What is the SEC’s case against Ripple?
The Securities and Exchange Commission (SEC) accused Ripple and its executives of raising over $1.3 billion through an unregistered securities offering of the XRP token.
While the judge ruled that programmatic sales are not considered securities, sales of XRP tokens to institutional investors are investment contracts. In the latter case, Ripple did violate U.S. securities law and will have to continue litigating over the approximately $729 million it received under written contracts.
What are the implications of the ruling?
The ruling offers a partial victory for both Ripple and the SEC, depending on the perspective.
Ripple secures a significant win because programmatic sales are not considered securities, which could bode well for the broader cryptocurrency sector, as most assets targeted by the SEC are managed by decentralized entities that primarily sold their tokens to retail investors through exchange platforms, experts say.
Still, the ruling does not significantly clarify what makes a digital asset a security, so it remains unclear whether this lawsuit will set a precedent for other open cases involving dozens of digital assets. Issues such as the appropriate degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
What is the SEC’s stance on crypto assets?
The SEC has intensified its enforcement actions toward the blockchain and digital asset sector, filing charges against platforms like Coinbase and Binance for allegedly violating U.S. securities law. The SEC asserts that most crypto assets are securities and, therefore, subject to strict regulation.
Although defendants may use parts of the Ripple ruling to their advantage, the SEC may also find reasons in it to maintain its current strategy of regulation through enforcement.
What is the current status of the SEC vs. Ripple case?
The court decision is a partial summary judgment. The ruling can be appealed once a final judgment is issued or if the judge allows it beforehand. The case is in a pre-trial phase, where both Ripple and the SEC still have the possibility of reaching a settlement.
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