Why Is XRP Going Up? Saylor Labels It a Token and Urges Regulatory Framework

STO News

Michael Saylor, Executive Chairman of Strategy, recently
commented on the inclusion of cryptocurrencies in US strategic reserves. His
remarks followed the signing of an executive order by US President Donald
Trump, which included Bitcoin alongside altcoins like Ethereum, XRP, Solana,
and Cardano, Coingape reported.

The XRPUSD H1 chart indicates that the price recently
bounced off a trendline’s support and has been gradually moving upwards.

Saylor Discusses XRP and Bitcoin Reserves

In an interview with Fox Business, Saylor addressed
regulatory considerations for digital assets. When asked about XRP, he referred
to it as a token, suggesting that its issuance should occur under a regulatory
framework.

“I think those are tokens, and we should have a regulatory
framework that allows those to be issued,” Saylor said.

Saylor Supports Bitcoin Reserve, Armstrong Suggests
Simplicity

On the broader question of whether altcoins should be part
of US reserves, Saylor stated that the prevailing view favours Bitcoin as the
sole strategic reserve asset in the long term. The comments reflect ongoing
discussions about the regulatory landscape and the role of digital assets in
national reserves.

Meanwhile, Coinbase
CEO Brian Armstrong suggested that limiting the reserve to bitcoin would be
the simplest option, presenting a clear successor to gold. In an X post, he
mentioned he was still forming an opinion on asset allocation, but proposed a
market cap-weighted index of crypto assets as an alternative to provide
variety, though he considered the first option the easiest.

XRPUSD Bounces, Buyers Push Upward

The XRPUSD H1 chart reveals that the price has bounced twice
off the drawn support level. During the last bounce, a bullish candle formed
with a strong rejection from the upside.

Despite this, minor buyers have been gradually pushing the
price upward. The price recently broke out at 2.53850, a significant level.
This level may now act as support, with intraday traders likely to monitor
price action closely around it.

Ripple Expands Partnerships and Developments in Crypto
and DeFi

Ripple has been involved in various significant
developments. South Korea’s institutional crypto
storage firm BDACS will utilize Ripple Custody to secure XRP and RLUSD, a
dollar-pegged stablecoin issued by Ripple. This partnership targets
institutional clients seeking secure storage for digital assets.

Ripple has also partnered with Revolut
and Zero Hash to increase access to RLUSD, positioning it as a competitor
to USDT and USDC.

Additionally, Ripple
has collaborated with Portuguese exchange provider Unicâmbio to facilitate
instant international payments between Portugal and Brazil, utilizing digital
assets for efficient cross-border transactions.

Ripple garnered attention when CEO Garlinghouse and Chief
Legal Officer Alderoty attended a
private dinner with President-elect Donald Trump on January 6, sparking
speculation about the ongoing legal case with the US Securities and Exchange
Commission (SEC). The SEC had filed a lawsuit in December 2020 alleging Ripple
sold XRP tokens as unregistered securities.

In philanthropy, Ripple
donated $100,000 in XRP to support communities affected by California wildfires,
aiding organizations like World Central Kitchen and GiveDirectly through The
Giving Block platform.

Investor activity in XRP remains strong, with whales
acquiring 520 million tokens during a recent price dip, indicating
continued interest. The SEC’s reassignment of Jorge Tenreiro, who oversaw
Ripple’s case, has raised questions about the agency’s future approach to
crypto litigation.

Ripple
has made progress in Japan, with expectations that banks will adopt the XRP
Ledger by 2025, aiming to enhance cross-border payments and currency
conversions for remittances.

In the DeFi sector, Ripple
has partnered with Chainlink to integrate its RLUSD stablecoin into
Ethereum-based DeFi applications for trading and lending.

The debate over XRP’s inclusion in a US crypto reserve
continues, with concerns about centralization complicating the discussion.
Ripple’s Chief Technology Officer, David
Schwartz, defended the decentralization of the XRP Ledger, emphasizing its
resilience against manipulation.

This article was written by Tareq Sikder at www.financemagnates.com.

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