XRP News Today: BlackRock Catalyst vs. Senate Delays Influence Outlook

Ripple-BlackRock Collab – Tokenization Gains Traction

XRP took center stage on Tuesday, September 23, as BlackRock (BLK) and VanEck stepped into the DeFi space, tokenizing fund holders.

Ripple CEO Brad Garlinghouse shared the news, stating:

“Very excited to share that BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) and VanEck’s Treasury Fund (VBLL) tokenized fund holders can redeem shares for RLUSD/ETH 24/7 365 through Securitize, and soon to come RLUSD/XRPL. Enterprise-grade instant onchain liquidity at your fingertips. That’s real utility.”

According to Ripple’s BLK:

“This marks the first integration of RLUSD into Securitize’s platform, with additional use cases and assets planned. Securitize is also integrating with the XRP Ledger (XRPL) to expand access and bring new utility to the XRPL ecosystem.”

What does this mean for XRP Holders?

XRP could potentially benefit from increased institutional adoption of XRPL infrastructure. The integration provides institutional validation, potentially triggering more financial institutions to consider XRPL for their tokenized needs. Crucially, there is the possibility of tokenized assets requiring XRP for cross-asset trades and cross-border remittances.

Washington Roadblocks Cloud XRP Momentum

Ripple faces storm clouds in Washington, overshadowing the tokenization news, leaving XRP in negative territory.

Crypto America host and journalist Eleanor Terrett reported the news on the Market Structure Bill from Capitol Hill, stating:

“Consensus among a handful of Capitol Hill sources is that the Sept. 30 market structure markup that Senate Banking Republicans were targeting is now effectively off the table. Democrats have yet to offer feedback on the legislation, saying they want an agreement on process before they start negotiating details. The looming government shutdown would also make it nearly impossible to hold a markup on the 30th, I’m told.”

A new potential target date is reportedly the week of October 20, though nothing has been finalized. Terrett suggested that the delay should not affect the chances of the bill reaching the Senate floor before the year’s end. However, this would be assuming that there are no major setbacks from across the aisle.

A potential delay to crypto legislation delivers a level of market uncertainty, weighing on sentiment. The purpose of the Market Structure Bill is to provide crypto firms, exchanges, and investors with regulatory clarity, including the classification of crypto as commodities or securities.

XRP-Spot ETF Final Deadline Decisions Loom

Coincidentally, the week of October 20 aligns with the final decision deadlines for several spot ETFs. Bitwise XRP ETF, Canary Capital XRP ETF, WisdomTree XRP ETF, and CoinShares XRP ETF have deadlines ranging from October 23 to 25.

However, it is unlikely that delays to the Market Structure Bill’s progress will influence the SEC’s decisions. The BLK addressed the classification of XRP as a non-security, paving the way to an XRP-spot ETF market.

In 2023, Judge Analisa Torres BLK that programmatic sales of XRP did not satisfy the third prong of the Howey Test. The US Court of Appeals BLK the SEC’s request to withdraw its appeal against the ruling in August, resolving the case.

Price Action & Technical Analysis: Holding $2.8 or Breaking $3

XRP fell 0.97% on Tuesday, September 23, following the previous session’s 4.06% slide, closing at $2.8264. Tracking the broader market trend (-0.53%), a six-day losing streak left the token close to key support levels. Traders are watching the following technical levels:

• Support: $2.8 and $2.5.
• Resistance: $3, $3.2, $3.335, and the all-time high at $3.66.

In the near term, several key price catalysts could drive price action:

• XRP ETF demand.
• Spot ETFs: Approval or delays of XRP-spot ETFs and BlackRock’s plans for an iShares XRP Trust filing.
• Blue-chip companies’ views on XRP as a treasury reserve asset.
• Regulatory milestones: Ripple’s US-chartered bank license application, the Market Structure Bill, and SWIFT headlines may also affect demand.

Catalysts & Scenarios

The balance of inflows, regulatory developments, and institutional demand will dictate whether XRP tests lower support levels or breaks higher resistance.

Bearish Scenario

• GDLC, BITW, and XRPR ETFs report lackluster inflows, and BlackRock downplays plans for an iShares XRP Trust filing.
• SEC declines XRP-spot ETF applications.
• Legislative roadblocks or slow progress on crypto-friendly regulations.
• Blue-chip companies dismiss the use of XRP as a treasury reserve asset.
• OCC delays or rejects Ripple’s US-chartered bank license.
• SWIFT maintains global dominance, capping Ripple’s market access.

These bearish events could push the token below $2.8, exposing $2.5, the next key support level.

Bullish Scenario

• BITW, GDLC, and XRPR report strong inflows.
• BlackRock files for an iShares XRP Trust, and the SEC approves spot ETFs.
• Blue-chip companies purchase XRP as a treasury reserve asset, and more payment platforms adopt Ripple technology.
• Ripple secures a US-chartered bank license, and the Senate passes the Market Structure Bill.
• SWIFT loses market share of global remittances to Ripple.

These catalysts could drive XRP toward $3. A break above $3 may bring $3.2 into play. A sustained move through $3.2 could pave the way toward $3.335.

Conclusion: Can BlackRock Trigger the Next XRP Rally?

Delays to the Market Structure Bill’s progress to the Senate floor shift investor focus to the spot ETF filings. While approvals may boost institutional demand, BlackRock’s presence could be crucial. A filing for an iShares XRP Trust could be a price catalyst, potentially sending the token to new highs. However, continued delays to spot ETF approvals and regulatory setbacks may weigh on sentiment.

Analysts will closely monitor how regulatory and economic risks affect XRP’s trajectory in the coming weeks.