XRP News Today: License Hopes and ETF Buzz Lift XRP Above $3.26; BTC Hits $120k

Ripple, RLUSD, XRP, and US Banking Licenses – Will the OCC Grant Ripple a License?

As the dust settles from the abrupt end to the SEC vs. Ripple case, investor focus shifts to Ripple’s move into TradeFi and XRP-spot ETFs.

Ripple recently applied for a US National Trust Bank’s (RNTB) Charter, but faces strong opposition from US banks. The Independent Community of Bankers of America (ICBA) filed a letter of opposition, warning Ripple could attempt to bypass key banking regulations.

Notably, the ICBA stated:

“RNTB would enable Ripple Labs to offer a product that functions similarly to a demand deposit. This has the potential to drain deposits out of the banking system. For example, a recent Treasury Department report suggested that as much as $6.6 trillion might flow from deposit accounts into stablecoins if yield is offered.”

The ICBA warned of the potential threat of deposit outflows to the banking system, contravening the OCC’s mandate of ‘assuring the safety and soundness of the institution subject to its jurisdiction.’

The ICBA raised two concerns. Firstly, the absence of FDIC insurance. Secondly, RNTB’s parent company would avoid consolidation supervision and could be owned by a commercial entity, unlike traditional bank holding companies.

SEC Gives Ripple a Helping Hand

Notably, the ICBA also cited the recently concluded SEC vs. Ripple case, stating:

“As a result of Ripple’s Securities Act violations, and ongoing behavior in disregard of a court order, the District Court permanently enjoined Ripple from violating Section 5 of the Securities Act of 1933 and imposed a civil penalty of $125 million.”

The ICBA added:

“Ultimately, the District Court granted in part the SEC’s request for an injunction and a civil penalty because the Court found that ’Ripple’s willingness to push the boundaries of the [Summary Judgment] Order evinces a likelihood that eventually (if it has not already) cross the line.”

However, the SEC’s stance toward Ripple’s violations of US Securities Laws has materially shifted since former SEC Chair Gary Gensler stepped down.

The SEC recently issued an order, waiving the ‘Bad Actor’ disqualification arising from the permanent injunction. Legal experts described the waiver as the next best thing to Judge Torres lifting the permanent injunction. Pro-crypto lawyer Bill Morgan referred to Ripple’s aspirations to enter the banking space, stating:

“Ripple is no longer barred from conducting exempt securities offerings. It may also help Ripple achieve broader business objectives, including its application for a national bank charter.”

The SEC’s waiver could bolster Ripple’s chances of obtaining a US charter bank license, potentially boosting RLUSD and XRP adoption.

Significantly, institutions using RLUSD may convert substantial amounts to XRP for liquidity operations, cross-border payments, or FX bridging.

On Tuesday, August 12, Paxos Trust Company joined Ripple and Circle, applying to establish a US national trust bank, targeting traditional banks. Paxos is behind PayPal’s (PYPL) PYUSD stablecoin.

XRP Price Outlook: Banking Licenses and Spot ETFs Key to Next Breakout

XRP snapped a four-day losing streak on Tuesday, August 12, rallying 4.31% to close at $3.2675. The token outperformed the broader market, which gained 2.96%, lifting the total crypto market cap to $4.01 trillion.

In the near-term, XRP’s price outlook hinges on several key catalysts, including:

• XRP-spot ETF updates.
• Ripple’s progress on a US banking license.
• SWIFT-related developments.
• Legislative news.

A breakout above the crucial $3.3 resistance level may enable the bulls to target the $3.5 mark. A sustained move through $3.5 brings the July 18 all-time high of $3.6606 (Binance Exchange) into sight.

However, a break below $3.2 may signal a drop to the psychological $3 support level. If broken, XRP could test the August 5 low of $2.9184 and the 50-day Exponential Moving Average (EMA).

Explore our full XRP forecast here for key breakout zones and timing insights.

Bitcoin Eyes New Highs as US CPI Report Bolsters Fed Rate Cut Bets

While XRP advanced on hopes for a Ripple banking license and XRP-spot ETF approvals, Bitcoin (BTC) reacted to the US CPI Report.

The annual inflation rate remained at 2.7% in July, below a consensus 2.8%, fueling expectations of a September Fed rate cut. According to the CME FedWatch Tool, the chances of a September cut jumped from 85.9% on August 11 to 93.4% on August 12.

BTC climbed from $118,487 to a session high of $120,156 in response to the inflation report.

US BTC-Spot ETF Market at Risk of Snapping Outflow Streak

While the US CPI Report boosted demand for BTC, subdued inflows capped the session gains. On Monday, August 11, ETF issuers recorded total net inflows of $178.1 million. However, BTC came under selling pressure late in Tuesday’s session, as investors considered spot ETF flow trends for the Tuesday, August 12, session. According to Farside Investors, key flows for August 12 included:

• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $23.9 million.
• Meanwhile, Grayscale Bitcoin Trust (GBTC) saw net outflows of $21.6 million.

With BlackRock (BLK) iShares Bitcoin Trust (IBIT) flow data pending, total US BTC-spot ETF outflows reached $45.5 million, potentially snapping a four-day inflow streak.

Meanwhile, ETH-spot ETF issuers registered total net inflows of $1,018.8 million on August 11, the largest since launch, accelerating investor rotation from BTC into Ethereum (ETH). ETH surged 8.62% on August 12, with the ETH-spot ETF market potentially extending its inflow streak to six sessions.

Nate Geraci, President at Nova Dius Wealth, remarked on the US ETH-spot ETF market, stating:

“Feel like spot eth ETFs were severely underestimated simply b/c tradfi investors didn’t understand eth… Btc had nice clean narrative, ‘digital gold’. Eth takes more time for investors to understand. Now they’re hearing ‘backbone of future financial markets’ & it’s resonating.”

BTC Price Outlook: Fed Speakers and Spot ETF Flows in Focus

BTC rose 1.1% on Tuesday, August 12, reversing Monday’s 0.29% loss to close at $119,999.

Several key factors will dictate the near-term price trajectory. These include:

• Fed monetary policy stance.
• Legislative developments on Capitol Hill.
• BTC-spot ETF flows.

Potential scenarios:

• Bearish Scenario: Legislative roadblocks, hawkish Fed cues, and ETF outflows. A combination of these may push BTC toward $115,000, exposing the 50-day Exponential Moving Average (EMA).
• Bullish Scenario: CLARITY Act’s progress on Capitol Hill, dovish Fed rhetoric, and ETF inflows. In this case, BTC could climb above its all-time high of $122,190.

Key Market Drivers to Fuel or Derail a Breakout

Traders should monitor the following key events to determine whether XRP and BTC climb to new all-time highs:

• XRP-spot ETF headlines.
• Legislative news: The CLARITY Act.
• US Economic Data.
• Fed commentary: Hawkish or dovish signals.
• ETF market flows: Flow trends crucial for BTC’s supply-demand balance.

See where analysts expect XRP and BTC to head as legal and political risks evolve.