The CLARITY Act and the Fed’s decision both impact the $1.30 support from hence why it’s in the spotlight. XRP price touched $1.33 as the broader market extended its macro-driven slump. Total market cap of all crypto assets fell 1.47% to $2.61 trillion, and investors continue to be risk averse.
Bitcoin was seen at $76,709 and Ethereum was at $2,471.58. Although some support for crypto assets is visible due to regulatory activity, the broader market is still waiting for the outcome of the Fed and its ramped up rate decisions, which weighs on risk taking.
CLARITY Act Version 2.0
New details of version 2.0 of the CLARITY Act have been released. The version released by Senate Republicans, includes ethical statutes along with provisions for BRCA and stablecoins, amongst others.
One key new provision is the change to Decentralized Finance. The provision states that non-decentralized DeFi will require CFTC registration. This is broadly aligned with Section 10301 of the Senate Banking Committee.
New language has been drafted to restrict DeFi operations to spot digital cash transactions. This solves the issue of blockchain-based prediction markets. A new provision allows credit unions to offer crypto if they operate under all applicable regulations.
September 15 Senate Vote Could Be an XRP Voting Catalyst
The Senate is expected to have a procedural vote on September 15. The bill needs 60 votes to move forward. The opposition is concerned with measures that deal with anti-money laundering, ethical concerns regarding the regulations, and impacts on traditional bank deposits.
It is possible that the CLARITY Act will pass. This will bring more clarity and likely positive regulations on XRP and other digital assets that are payment focused. However, another delay in the legislative process would most likely continue the unease among crypto investors in the US markets.
XRP Price Prediction Ahead of the September FOMC Meeting
The Fed has scheduled their next meeting for September 15-16, creating another market moving event for XRP along with other risk assets. As of now, futures markets show a 70% chance of a 25 basis point increase and an anticipated new range of 3.75%-4.00% US interest rates.
There is a possibility that borrowing money will become more expensive and may negatively impact cryptocurrencies. XRP may have a strong dollar support level at $1.30. A break of this level may further potentially bring the price to $1.25.
On the other hand, should $1.37 be taken out, this will improve the positive outlook of XRP. This level may then be expected to move to $1.45 and $1.50. Positive regulations from the government and a less impactful FOMC meeting are expected to positively help this trend.
XRP ETF Assets Reach $1.45 Billion
Despite a drop in fund prices, XRPs exchange traded funds also saw capital inflows. On the 10th of September, XRP ETFs saw $5.14 million in inflows. Of the inflows, XRPZ was funded by Franklin.
Combined trading volume hit $25.63 million. Total ETF assets hit $1.45 billion. Total inflows across the five listed funds was $1.70 billion.
Bitwise funded the largest fund with $498.84 million, although there were 3.83% shares losses for the day. After the reported inflows for the day, Franklin is funding $376.88 million.
XRP Outlook
XRP has a critical date range with both the CLARITY Act vote and FOMC meeting happening next to one another. There is still bull potential with the support at $1.30 even if that level is lost, but price action could seal the bear case at $1.25. Positive regulatory changes along with dovish monetary policy is the bull case, while the reverse is true for the bear case.
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