SVB News: XRP to Face a Choppy Session and SEC Vs Ripple Silence
Ripple CEO Brad Garlinghouse spoke about the platform’s banking relationship with SVB. He confirmed that Ripple has exposure to SVB as a banking partner.
Recent Sunday saw a 2.01% increase in XRP. XRP finished the day at $0.37393, reversing a loss of 1.24% on Saturday. XRP dipped below $0.36 for the second time in six sessions despite the positive session.
During a range-bound morning, XRP fell to a low of $0.35182 in the late afternoon before acting. At $0.3593, XRP breached the First Major Support Level (S1). Nevertheless, XRP surged to a final-hour high of $0.3740 after establishing support at the Second Significant Support Level (S2) around $0.3520. XRP pulled slightly after falling short of the First Major Resistance Level (R1) at $0.3755, ending the day at $0.37393.
On Sunday, it was another quiet session. Investors were not diverted from the regulatory activities and the de-peg and re-peg of the Dollar Coin (USDC) by developments in the SEC v. Ripple case. The news about Signature Bank (SBNY) and Silicon Valley Bank (SIVB) increased demand for riskier assets.
US regulators declared on Sunday that beginning on Monday, all customers will have access to their deposits. In addition, the Federal Reserve established a new Bank Term Financing Program to provide depository institutions with loans with a one-year duration. Treasury securities and other owned assets would be pledged as security by institutions. In order to safeguard all depositors, officials shut down Signature Bank, which had had identical issues.
Also supporting the re-peg was USD Coin (USDC). Circle said on Saturday that it will utilise corporate cash to fill a $3.3 billion vacuum left by the failure of SVB. The re-pegging procedure was aided by reports that authorities were safeguarding depositors. Brad Garlinghouse, the CEO of Ripple, discussed the platform's banking partnership with SVB on Sunday.
Brad Garlinghouse revealed that as a banking partner, Ripple has exposure to SVB. Garlinghouse informed the neighbourhood that there would be no interruption to day-to-day operations because Ripple holds the majority of its USD with a larger network of banking partners.
The CEO of Ripple did seize the chance to draw attention to the health of the American banking system, stating,
“It’s ironic that so much of what’s happening (as some companies scramble to make payroll) highlights how broken our financial systems still are – i.e., wires are still not 24/7/365, rumors lead to collapse, and the frictions of moving money within a deeply fragmented system.”
Updates in the SEC v. Ripple lawsuit will continue to be the major factor in the upcoming crypto regulation systems. A decision on the Hinman Papers and Summary Judgment Reply Briefs is awaited by investors.
Investors should still keep an eye on news about Binance and FTX as well as legislative action and regulatory developments. After taking action to safeguard SVB and SBNY depositors, politicians and regulators could turn their focus back to the world of digital assets.
The decision of the SEC Vs Ripple lawsuit will have a significant impact on crypto regulation.
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