XRP News Today: RLUSD Approval Fuels XRP Rebound as BTC Hovers below $97k

Ripple Stablecoin RLUSD Gets US Regulatory Green Light

On Tuesday, December 10, Ripple CEO Brad Garlinghouse announced that the New York State Department of Financial Services (NYDFS) approved Ripple USD (RLUSD), saying,

“This just in…we have final approval from NYDFS for RLUSD! Exchange and partner listings will be live soon – and reminder: when RLUSD is live, you’ll hear it from Ripple first.”

Ripple’s RLUSD Approval: A Milestone in Crypto Regulation

Ripple introduced RLUSD in June 2024, a 1:1 US dollar-backed stablecoin aiming to provide transparency and stability on the XRP Ledger (XRPL) and Ethereum.

Ripple plans to use RLUSD alongside XRP as part of its strategy to grow its global remittance business.

The NYDFS approval marks a significant milestone for Ripple, supporting its expansion in the US and its challenge to traditional banking systems and SWIFT.

RLUSD Approval: A Blow to the SEC

The RLUSD approval could be a blow to the SEC, SEC Chair Gary Gensler, and the agency’s appeal of Ripple case-related rulings.

In March 2024, the SEC filed a remedies-related opening brief, seeking penalties and an injunction prohibiting Ripple from selling unregistered XRP to institutional sales.

The SEC mentioned Ripple’s stablecoin in the Ripple case. In April 2024’s remedies-related reply brief, the SEC labeled RLUSD an issuance of a new unregistered crypto asset.

Judge Analisa Torres’ decision not to grant the SEC’s injunction removed a major roadblock for Ripple’s US ambitions. This approval reinforces Ripple’s position while undermining the SEC’s regulatory narrative.

XRP Price Volatility and Regulatory Impact

On Tuesday, December 10, XRP rallied 7.00%, partially reversing Monday’s 14.86% tumble, closing at $2.3729. Significantly, XRP outperformed the broader crypto market, which declined by 0.78%, bringing the total market cap to $3.360 trillion.

Price trends will likely depend on today’s Senate Banking Committee vote on SEC Commissioner Carline Crenshaw’s renomination. Commissioner Crenshaw’s renomination may influence the SEC’s decision to pursue its appeal against the Ripple rulings.

Internal SEC rules mandate that an agency vote, not the Chair alone, determines the appeal’s continuation or withdrawal.

On Tuesday, Fox Business journalist Eleanor Terrett reported news from Capitol Hill, potentially swaying the vote in Commissioner Crenshaw’s favor, saying,

“The swearing in of new senators Adam Schiff and Andy Kim means that Senate Banking Dems will have enough votes to push Crenshaw through if they all show up to vote tomorrow.”

Significantly, the Democratic governors reportedly appointed senators Adam Schiff and Andy Kim three weeks early, just in time for Commissioner Crenshaw’s reappointment vote.

Commissioner Crenshaw and the SEC Appeal

Nevertheless, Commissioner Crenshaw’s vote may not prevent the SEC from withdrawing the Ripple appeal. Commissioner Crenshaw would be the last remaining Democrat after Chair Gensler (January 20) and Commissioner Lizarraga (January 17) leave the agency.

Expectations for the SEC to pursue the appeal could pressure XRP toward $1. Conversely, a withdrawal may drive XRP past its January 2018 all-time high of $3.5505.

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BTC Inflows and Market Sentiment: Key Drivers

Bitcoin (BTC) continued influencing crypto market sentiment on Tuesday, December 10. The US BTC-spot ETF market reported net inflows of $479.1 million on Monday, December 9, extending its net inflow streak to eight sessions.

Speculation the Trump administration may include BTC as a US strategic reserve asset (SBR) drove BTC-spot ETF demand.

The US BTC-spot ETF market could extend its net inflow streak to nine sessions on Tuesday, December 10, potentially the longest since July 2024.

According to Farside Investors:

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $210.5.
• Grayscale Bitcoin Mini Trust saw net inflows of $6.4 million.

Excluding iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market reported net inflows of $142.9 million on Tuesday. BlackRock’s (BLK) IBIT remains the key contributor to total net inflows.

Bloomberg Intelligence Senior ETF analyst Eric Balchunas commented on IBIT’s success to date, saying,

“IBIT already has as much in assets as the 50 European focused ETFs (region + single country) COMBINED and they’ve been around for 20 yrs.“

Microsoft and the Crypto Ecosystem: A New Development

On Tuesday, Microsoft (MSFT) shareholders voted against adopting BTC as a balance sheet asset.

MicroStrategy (MSTR) founder and Chairman gave a three-minute presentation to Microsoft’s Chairman/CEO Satya Nadella and the board of directors ahead of the shareholders meeting. The presentation outlined the reasons for adopting BTC. However, Saylor’s presentation failed to sway the board. The board recommended against the proposal ahead of the shareholders meeting.

Bitcoin Price Outlook

On Tuesday, December 10, BTC declined by 0.54%, following a 3.57% loss from Monday, closing at $96,912. Significantly, BTC dropped below $95k for the second consecutive session.

Near-term BTC price trends will depend on US BTC-spot ETF market flows, US CPI data, and US government BTC movements.

Robust US BTC-spot ETF inflows and softer US inflation data could drive BTC toward $100,000. Conversely, hotter-than-expected inflation and a pullback in US BTC-spot ETF inflows could drag BTC toward the $90,742 support level.

Investors should also monitor US government BTC transfers. A large US government BTC transfer could raise oversupply concerns, potentially overshadowing SBR hopes.

Market Outlook for XRP and BTC

Both XRP and Bitcoin are at pivotal junctures. From regulatory rulings to ETF inflows, market dynamics remain uncertain. Stay updated here with our latest insights into crypto markets and regulatory developments.