XRP News Today: Ripple President Talks Ripple Stablecoins and XRP-Spot ETFs

The Wednesday Overview

On Wednesday (June 5), XRP slipped by 0.04%. Partially reversing a 1.19% gain from Tuesday (June 4), XRP ended the session at $0.5255.

Crypto-Spot ETF Market-Related News Impacted Buyer Demand

On Wednesday, SEC Chair Gary Gensler discussed US ETH-spot ETFs, suggesting a lengthy timeline to approve the S-1 forms. Speaking with CNBC, the SEC Chair said,

“We have in the US, already, a way that you can invest in various underlying securities and underlying commodities, called exchange-traded products (ETP). In January, we approved an exchange-traded product for Bitcoin, and about a week and a half ago, similar filings to list on the NYSE, list on the NASDAQ, and the like, exchange-traded products on Ethereum.”

Gensler added,

“Ethereum had been traded on the Chicago Mercantile Exchange Futures for three-plus years and the staff looked at that closely and that was approved. Now the underlying exchange-traded products, they’ll need to go through a process to have the disclosure about that and that will take some time but they’re working on that.”

The SEC Chair also took the opportunity to target the crypto market, saying,

“These crypto exchanges, Jim, are doing things we would never allow the NYSE to do. Our laws don’t allow you to trade against your customers. And so, you’ve seen the bankruptcies in this space and some of the most leading lights in this field are either in jail, about to go to jail, or waiting for extradition.”

The anti-crypto rhetoric left XRP trailing the broader crypto market. On Wednesday, the total crypto market cap gained 1.01% as investors raised bets on a September Fed rate cut.

Concerns about the SEC vs. Ripple case affected buyer appetite for XRP. The SEC filed its remedies-related opening brief in March, arguing for an almost $2 billion penalty and an injunction. XRP could face increased selling pressure if the court prohibits XRP sales to institutional investors.

Furthermore, SEC plans to appeal against the Programmatic Sales of XRP ruling remained an XRP headwind. SEC Chair Gensler’s anti-crypto rhetoric continued reinforcing investor expectations of an appeal.

Despite the SEC stance on cryptos, Ripple President Monica Long delivered a more positive outlook for investors to consider.

XRP-Spot ETFs and the Ripple Stablecoin

On Wednesday, Ripple President Monica Long spoke to CNBC. The Ripple President discussed increased institutional interest in digital assets via ETFs and tokenization of real-world assets.

The Ripple stablecoin was another talking point, with Monica Long stating,

“So the reason we’re entering this market is we see demand from our customers, financial institutions of various types, who want to use blockchain for more efficient global payments and want to do it using a US dollar stable. At Ripple, we have a 10-plus-year legacy of being a very trusted, compliant, secure player in the enterprise space. So, I think we’re a great candidate to bring a trusted US dollar stable to the market.”

In May, the SEC filed its remedies-related reply brief. Significantly, the SEC targeted Ripple plans to launch a stablecoin, calling it the issuance of a new unregistered crypto asset.

The Ripple President also affirmed the need for XRP after the launch of the Ripple stablecoin.

Wrapping up the CNBC interview, Monica Long had this to say about XRP-spot ETFs,

“I think it would make a lot of sense. If you think about it, only XRP and Bitcoin have regulatory clarity on status in the US. XRP has been a top ten crypto asset by market cap and is in the top five if you look at daily traded volume, so I think that would make a lot of sense.”

SEC plans to appeal against the Programmatic Sales of XRP ruling may affect the timing of a US XRP-spot ETF market.

XRP Price Action

Daily Chart

XRP hovered below the 50-day and 200-day EMAs, affirming the bearish price signals.

An XRP break above the 50-day EMA would support a move to the 200-day EMA. A breakout from the 200-day EMA could give the bulls a run at the $0.5739 resistance level.

SEC activity and SEC vs. crypto case-related updates need consideration.

Conversely, an XRP fall below the trend lines could signal a drop toward the $0.48 handle.

The 14-day RSI reading, 50.56, indicates an XRP break above the $0.5739 resistance level before entering overbought territory.