- The XRP recovers above the 100-day EMA as a bulls eye breakout beyond $ 3.00.
- Fast-track ETF approval proposals may increase the possibility of SEC Green Light for XRP ETF.
- XRP meets two out of three approval conditions under new criteria, as well as with solana.
Ripple (XRP) on Tuesday places above a significant support level, which is provoked by micro telwind in the broad cryptocurrency market. A breakout from $ 3.00 psychological level, followed by an increase in its record high of $ 3.66, is on a card supported by optimism for approval of the Exchange Traded Fund (ETF) in the fourth quarter.
Fast-tracking crypto ETF approval
CBOE’s BZX Exchange, NASDAQ, and NYSE ArCA filed 19B-4 forms with the United States of America (US) Securities and Exchange Commission (SEC), proposed to amend the current Crypto ETFS listing standards.
On July 30, the filing came amidst the arrival of capital in the existing bitcoin (BTC) and Etharium (Ath) spot ETF. Although the SEC is sitting on more than 90 Crypto ETF proposals, according to Bloomberg’s analyst James Safart, making a cumbersome backlog.
The 19B-4 filing is a document used by self-regulatory bodies, such as to propose a change in rules in Exchange, SEC.
The SEC historically extended the ETF approval process to a maximum time limit of 240 days, which has delayed the new listing significantly. However, with the proposed rule change, the SEC Crypto may rapidly track the approval process between the increasing number of ETF applications.
CBOE’s BZX Exchange, NASDAQ, and NYSE ArCA change proposals end up in three-state listing criteria. According to a report by Galaxy Research, the first condition is that “Commodity trades a market that is an intermarket monitoring group (‘ISG’ member).
The second condition is that “Commodity underlines a futures contract that has been made available to trade on a specified contract market for at least six months”.
The third position provides that “ETFs are designed to provide an economic risk of less than 40% of their net asset value for commodity list and trades on the National Securities Exchange.” This applies only on the initial basis.
Depending on the three-state criteria, 10 tokens qualify for early listing, including Dogicine (DOGE), Bitcoin Cash (BCH), Litcoin (LTC), Chanlink (Link), Steller (XLM), Avashellal (AVX), Shibin (Shib), Sol (Sill), Sol (Sill), Sol (Shib), Sol (Shib), Sol (Shib), Sol),,
XRP and Cardano (ADA) are expected to meet new listing criteria On 20 September and 1 OctoberRespectively, because they would be trading at a specified contract market (DCM) for six months after their initial listing date.
Qualifying token | Source: Milky Way Research
Many organizations have already presented the commentary to SEC in response to the early list criteria. Both the Digital Chamber and Investment Advisor Multicin Capital Management both agree to a minimum market capitalization of $ 500 million and at a trading volume of the last six months at a at least $ 50 million.
Galaxy Research said in the report, “By adopting a comparable fast-track process, the objective was anchored in the criteria, managing the growing backlog of SEC applications, can provide clarity to the issuers, and expand the regulated access to digital assets.”
The XRP stands to qualify for the quick listing process, which will significantly increase the possibility of ETF approval with SEC. Exposure to alternative capital sources can increase its validity as an asset class and increase the case of boom.
Technical approach: XRP bulls defend key support
The XRP price remains above the 100-day exponential moving average (EMA) support at $ 2.76 as bulls target a breakout above psychological resistance at $ 3.00. A reversal of the relative power index (RSI) on 41 on the daily chart supports the short -term rapid outlook.
If the RSI stabilizes the uptrend over the midline, the least resistance will be upwards, indicating an increase in buying pressure. A brake above a $ 3.00 barrier may also promote risk-trans-feeling, as the bulls targets a breakout towards a record high of $ 3.66 on 18 July.
XRP/USDT Daily Chart
Nevertheless, traders should take care when managing the risk, as the moving average convergence deviation (MACD) indicator has maintained a sales signal since July 25. Losing 100-day EMA support at $ 2.76 can increase the decline towards 200-day EMA for $ 2.51.
Sec vs Ripple Sue FAQs
It depends on the transaction, according to a court verdict issued on July 14, 2023: For sale, XRP is a security for sale. XRP is not a protection for retail investors who bought tokens through exchanges, on-demand liquidity services and other platforms on other platforms.
The United States Securities and Exchange Commission (SEC) accused Ripple and its officials of raising more than $ 1.3 billion through an offering of an unregistered property of XRP tokens. While the judge ruled that programmatic sales do not consider securities, institutional investors are truly investment contracts of XRP tokens. In this final case, Ripple violated the US Securities Act and had to pay a civil fine of $ 125 million.
The ruling gives a partial victory for both the ruling Ripple and The SEC, which depends on what one sees. Ripple gets a major victory over the fact that programmatic sales do not consider sales as securities, and it can bend well for a broad crypto region as most of the assets monitored by SEC’s cracks are controlled by decentralized institutions, which sell their tokens through exchange platforms, say most retail investors, say by experts. Nevertheless, the ruling ruling digital asset does not much help to answer the important question to protect, so it is not yet clear whether the lawsuit will set an example for other open cases that affect dozens of digital assets. There are subjects like the correct degree of decentralization to avoid “safety” labels or to attract the line between institutional and programtic sales.
The SEC has carried forward its enforcement operations towards the blockchain and digital assets industry, allegedly filed against platforms such as coinbase or benns for allegedly violating the US Securities Act. The SEC claims that most of the crypto property are securities and thus subject to strict regulation. While the defendants can use parts of Ripple’s decision in their favor, SEC can also find it due to its current strategy of regulation by enforcement.
