XRP steadies above $0.47 as Ripple President breaks silence on Real USD stablecoin
- Ripple President Monica Long commented on the upcoming stablecoin Real USD and its impact on XRP.
- Long said stablecoin and XRP are complementary and additive, addressing the concerns over the RLUSD launch.
- XRP edges higher and holds above $0.47 on Friday.
Ripple (XRP) President Monica Long recently appeared on The Block Podcasts and addressed XRP trader concerns about the stablecoin’s launch. The payment remittance firm’s stablecoin is called Real USD (RLUSD) and is slated for launch in 2024.
Long shared her views on the stablecoin, its role in the ecosystem, the Real World Asset (RWA) narrative, and the institutional pivot on crypto.
Daily digest market movers: Ripple President answers burning questions on Real USD and XRP
- Ripple President Monica Long spoke about the firm’s upcoming stablecoin, Real USD, and its relationship with XRP.
- In the podcast interview, Long answered questions on the nature of the stablecoin and discussed the RWA narrative and shift in institutional investors and their stance on crypto.
Ripple's upcoming stablecoin will 'complement' XRP@Ripple President @MonicaLongSF joins @fintechfrank on The Scoop to discuss the recent growth and expansion of Ripple's product offerings, including an upcoming stablecoin
— The Block Podcasts (@TheBlockPods) June 26, 2024
OUTLINE
00:00 Introduction
00:50 Ripple Updates… pic.twitter.com/P0sTl2qXS9
- When asked about RLUSD and its impact on XRP, Long said that the stablecoin “complements” Ripple and it is “additive.”
- Therefore, Ripple’s stablecoin is designed to enhance the cross-border payment remittance narrative and seamless transfers rather than hamper XRP’s utility.
- Long explained that XRP will continue to play central in Ripple’s payment solutions, RLUSD will be introduced to complement the use of the altcoin.
- The last update in the SEC vs. Ripple lawsuit is that the regulator is asking for $102.6 million in fines against Ripple’s proposed $10 million.
Technical analysis: XRP could extend losses over the weekend
Ripple has been in a state of decline since March 11. The altcoin is struggling to break past resistance at $0.50 and could extend losses by 5%, dipping to support at $0.4508, the June 7 low.
The red histogram bars on the Moving Average Convergence Divergence (MACD) momentum indicator supports this bearish narrative.
XRP/USDT daily chart
If Ripple begins recovery, XRP could climb toward the nearest Fair Value Gap between $0.4825 and $0.4841. Further up, in its rally towards the psychological barrier at $0.50, Ripple faces resistance at $0.4955, the 23.6% Fibonacci retracement of the drop from the March 11 top of $0.7440 to the April 13 low of $0.4188.
SEC vs Ripple lawsuit FAQs
It depends on the transaction, according to a court ruling released on July 14: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who bought the token via programmatic sales on exchanges, on-demand liquidity services and other platforms, XRP is not a security.
The United States Securities & Exchange Commission (SEC) accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering of the XRP token. While the judge ruled that programmatic sales aren’t considered securities, sales of XRP tokens to institutional investors are indeed investment contracts. In this last case, Ripple did breach the US securities law and will need to keep litigating over the around $729 million it received under written contracts.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple gets a big win over the fact that programmatic sales aren’t considered securities, and this could bode well for the broader crypto sector as most of the assets eyed by the SEC’s crackdown are handled by decentralized entities that sold their tokens mostly to retail investors via exchange platforms, experts say. Still, the ruling doesn’t help much to answer the key question of what makes a digital asset a security, so it isn’t clear yet if this lawsuit will set precedent for other open cases that affect dozens of digital assets. Topics such as which is the right degree of decentralization to avoid the “security” label or where to draw the line between institutional and programmatic sales are likely to persist.
The SEC has stepped up its enforcement actions toward the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating the US Securities law. The SEC claims that the majority of crypto assets are securities and thus subject to strict regulation. While defendants can use parts of Ripple’s ruling in their favor, the SEC can also find reasons in it to keep its current strategy of regulation by enforcement.
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 before then. The case is in a pretrial phase, in which both Ripple and the SEC still have the chance to settle.
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.
