XRP > SEC

1. XRP Court Case

Key Takeaways:

• U.S. District Judge rules in favour of Ripple Labs, stating they did not violate federal securities law with XRP sales.

• XRP value surges by 75% following the landmark legal victory.

• The SEC gains a partial victory as the court finds that Ripple's $728.9 million XRP sales to hedge funds and sophisticated buyers were unregistered securities sales.

Summary:

The Great: In a significant legal victory for the cryptocurrency industry, U.S. District Judge Analisa Torres ruled that Ripple Labs Inc. did not violate federal securities law by selling its XRP token on public exchanges.

The Good: The judge's decision marks the first win for a cryptocurrency company against a case brought by the U.S. Securities and Exchange Commission (SEC). While the ruling is specific to this case, it could potentially support other crypto firms in their battles against the SEC's jurisdiction over their products.

The Not so Good: However, the SEC did secure a partial victory, with the judge holding that Ripple violated federal securities law by selling XRP directly to sophisticated investors. The ruling has sparked calls for Congress to provide clearer regulations for digital assets in the crypto industry.

2. Bitcoin ETF soon to go live in Europe

Key Takeaways:

• Jacobi Asset Management is set to launch Europe's first bitcoin ETF this month, a year after a postponement due to market conditions.

• Demand for the Bitcoin ETF has increased since last year, with the likes of Blackrock, Fidelity and Cathie Wood’s ARK recently applying for an ETF.

• Unlike existing ETNs, Jacobi's ETF offers direct ownership of underlying shares, reducing counterparty risk and not using leverage or derivatives.

Summary:

Jacobi Asset Management is preparing to list Europe's first bitcoin exchange-traded fund (ETF) this month, a year after its initially planned launch. The company postponed the ETF's listing last year, citing unfavourable market conditions following the Terra Luna cryptocurrency crash and FTX exchange collapse.

Demand for the Bitcoin ETF has reportedly surged since then. Unlike existing digital assets exchange-traded products structured as exchange-traded notes (ETNs), Jacobi's ETF will offer direct ownership of the underlying shares, eliminating leverage and derivative use to minimize counterparty risk. The fund has been authorized in Guernsey, offering regulatory advantages for its launch.

3. Federal Reserve Launches FedNow

Key Takeaways:

• Federal Reserve launches FedNow, its new instant payments system for banks and credit unions of all sizes.

• The system allows 24/7 instant money transfers, offering benefits for individuals and businesses in managing cash flows.

• FedNow is not a CBDC, and the Federal Reserve emphasizes that it would only proceed with issuing a CBDC with congressional approval, responding to lawmakers' concerns and negative sentiment surrounding a digital dollar.

Summary:

The Federal Reserve has announced the launch of FedNow, a new instant payments system that enables banks and credit unions of all sizes to transfer money instantly for their customers, 24/7. The system has gone live, with 35 early-adopting banks and credit unions, as well as 16 service providers ready to support payment processing.

FedNow aims to provide faster and more convenient everyday payments, allowing individuals to immediately receive paychecks and businesses to access funds instantly when invoices are paid.

The system operates as an interbank payment service alongside other Federal Reserve payment services like Fedwire and FedACH. The Federal Reserve clarified that FedNow is not a central bank digital currency (CBDC), and they have made no decision on issuing a CBDC without congressional approval.

Latest Industry News

• Terraform Labs, the development firm behind the Terra network is actively seeking permission from a court to access data from FTX wallets.

• “There’s going to be 8 billion people on-chain over the next decade” - Coinbase protocols lead Jesse Pollak explains here.

• BitFinex Hackers agree to forfeit Billions in Bitcoin in a plea deal. See here.

Market Movements

Total Market Cap:

• Currently sitting at $1.16 Trillion as of today.

• Key Fibonacci level of 0.382 ($1.157 Trillion) which is acting as support.

• First time back at these levels since May of this year.

Top 10 Cryptocurrencies:

• XRP is back in the top 4 spot with its recent win against the SEC.

• Bitcoin hit $30,000 again this week with Ethereum reclaiming $2,000.

• Biggest gainers this week: Compound (COMP) 138.39%, Stellar (XLM) 83.55%, Bitcoin Cash (BCH) 80.38%.

Key Indicators:

MVRV:

The MVRV Z-Score uses blockchain analysis to identify periods where Bitcoin is significantly over or undervalued relative to its 'fair value'. It can be a good sign to an investor/trader of when to be buying or selling. You can read more in detail here.

Fear and Greed

Investors needs to be cautious of their own nature as their emotions could cloud their rational decision-making and judgement.

This Index is a collection of sources to track the general sentiment of the crypto market.

• Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.

• When Investors are getting too greedy, that means the market is due for a correction.

We value your feedback! Feel free to contact us if you have any suggestions, topic requests, or questions. Your input helps us tailor future editions of The Merge to suit your interests and needs.