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XRP News: US Lawmakers Call on the US Administration to Tackle the Illicit Use of Crypto

By:
Bob Mason
Published: Oct 19, 2023, 03:46 GMT+00:00

Senator Elizabeth Warren and a long list of US lawmakers have pushed for an increase in scrutiny of the crypto space. A heavy hand will impact the markets.

XRP News

In this article:

Key Insights:

  • XRP declined by 0.65% on Wednesday, ending the session at $0.4881.
  • Senator Elizabeth Warren and more than 100 US lawmakers call on the White House for action against the illicit use of crypto in terrorism financing.
  • Increased US scrutiny of the digital asset space may test the buyer appetite for crypto.

The Wednesday Overview

On Wednesday, XRP declined by 0.65%. Following a 1.38% loss on Tuesday, XRP ended the day at $0.4881.

US Lawmakers Push for Action Against the Illicit Use of Crypto

On Tuesday, the Financial Times reported that Israeli authorities forced Binance to close Hamas-linked crypto accounts. The FT also reported the seizure of millions of dollars in crypto.

The latest use of crypto to fund atrocities will pressure the US government to take a sterner stance on digital assets. Before the October 7 attack on Israel, legislation for crypto regulation was slowly making its way through the cogs of Capitol Hill.

Senator Elizabeth Warren is among over 100 lawmakers cosigning a letter to the White House Administration calling for action to curtail the use of crypto to fund terrorism.

The bipartisan letter states,

“Between 2021 and this past June, (Hamas and PIJ) raised over $130 million in crypto, and moved millions among each other, with PIJ sending over $12 million in crypto to Hezbollah since 2021. As the Wall Street Journal reports, […], crypto remains one of a number of tools the group uses to raise funds. Given the clear and present danger posed by the financing of these and other militant organizations, we ask the Administration to provide additional details on its plan to prevent the use of crypto for the financing of terrorism.”

A US Administration response to the letter may have a material impact on the crypto market. Progress toward legislation may also grind to a halt. US lawmakers rightly request the Administration to outline plans to tackle the use of crypto in terrorism financing. Any plan will likely involve intense scrutiny of US crypto exchanges and existing KYC and AML protocols.

The crypto community has called for urgent legislation to curtail illicit activity. In contrast, the anti-crypto community may push for more draconian measures.

White House Scrutiny Has Bearish Consequences

Historically, White House scrutiny of the US digital asset space had an adverse effect on investor sentiment. A call on regulators to increase regulatory activity within the crypto space could spook investors.

Since the Court ruling on XRP and Programmatic Sales, XRP has benefited from increased adoption. However, regulatory uncertainty and the ongoing SEC v Ripple case have contributed to the pullback from the post-ruling high of $0.9327.

XRP Price Action

Weekly Chart sends bearish price signals.
XRPUSD 191023 Weekly Chart

Daily Chart

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

An XRP return to sub-$0.4850 would bring the $0.4700 support level into play. US lawmaker scrutiny of the US crypto market could impact buyer appetite. However, SEC v Ripple and Coinbase case-related news would also need consideration.

An XRP break above the $0.5042 resistance level would give the bulls a run at the EMAs.

The 40.69 14-day RSI reading suggests a drop below the $0.48 handle before entering oversold territory.

XRP Daily Chart affirms bearish price signals.
XRPUSD 191023 Daily Chart

4-Hourly Chart

In the 4-hourly Chart, XRP remains below the 50-day and 200-day EMAs, reaffirming bearish price signals.

An XRP drop below $0.48 would support a move toward the $0.47 support level.

However, a breakout from the 50-day EMA would bring the $0.5042 resistance level and 200-day EMA into play. Selling pressure will likely intensify at $0.50. The 200-day EMA is confluent with the $0.5042 resistance level.

The 4-hourly RSI, with a reading of 42.87, suggests an XRP return to sub-$0.48 before entering oversold territory.

XRP 4-Hourly Chart reaffirms bearish price signals.
XRPUSD 191023 4-Hourly Chart

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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