The SEC vs. Ripple Case Impact took a backseat on Monday, May 19, as investors shifted focus to the crucial Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act vote. While the bill relates to stablecoins, the outcome of the vote could prove significant for XRP and the broader crypto market. Pro-crypto lawyers believed that if the GENIUS Act failed, it could shelve all other crypto legislation until 2029, potentially adversely impacting the Crypto Market.
Ripple CEO Brad Garlinghouse shared news of a trip to Capitol Hill to champion pro-crypto legislation, stating:
Risks of Derivatives Trading
However, not all lawmakers were welcoming. Garlinghouse remarked:
Senator Lummis’ pro-Bitcoin stance didn’t go unnoticed. Pro-crypto lawyer Bill Morgan commented:
“I posted many warnings about Senator Lummis. Her comments put her alongside some of the worst Bitcoin maxis around. She is a champion of Bitcoin exceptionalism, not a level playing field.”
Senator Lummis’ influential position on Capitol Hill could derail any lingering hopes of XRP becoming a US strategic reserve asset. In January, XRP climbed to a high of $3.3999 based on speculation that it would become a strategic reserve asset and hopes for an end to the Ripple case.
XRP Price Outlook
XRP fell 2.01% on Monday, May 19, partially reversing Sunday’s 3.18% gain to close at $2.3803. The token underperformed the broader market, which dropped 0.86% to a total crypto market cap of $3.28 trillion.
XRP’s near-term price outlook hinges on US crypto legislation, future court filings, court rulings, and sentiment toward an XRP spot ETF market.
Technical support sits at $2.3. A break above the May 12 high of $2.6553 could signal a move toward $3.00, with the potential to reach the record high of $3.5505.
Bitcoin Market Inflows
Bitcoin (BTC) joined XRP and the broader market in negative territory on May 19. Investor caution about the GENIUS Act vote overshadowed the effect of net inflows into the US BTC-spot ETF market, which is typically bullish for BTC price trends.
According to Farside Investors, US BTC-spot ETF issuers could extend the inflow streak to four sessions on May 19. Key inflow trends included:
- Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $188.1 million.
- ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $155.3 million.
Excluding BlackRock’s (BLK) pending iShares Bitcoin Trust (IBIT) data, the US BTC-spot ETF market saw total inflows of $361.5 million. IBIT remains the key player in the BTC-spot ETF market. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented:
IBIT had net inflows of $8,304.48 million year-to-date compared with inflows of $4,418.36 million into GLD.
BTC Market Outlook
BTC fell 0.85% on May 19, partially reversing Sunday’s 3.14% rally to close at $105,573.
BTC’s short-term outlook depends on several key drivers: the GENIUS Act vote, US-China trade developments, macroeconomic data, and ETF inflows or outflows.
Potential scenarios:
- Bearish Scenario: Rising US-China tensions, a failed GENIUS Act vote, US recession fears, and ETF outflows. Bearish sentiment could send BTC toward $90,000.
- Bullish Scenario: Easing trade friction, positive US economic data, the GENIUS Act passes in Congress, and ETF inflows. Bullish sentiment could drive BTC above the record high of $109,312.
Final thoughts
The paper explores the critical junction where the SEC against Ripple case and the larger crypto market find themselves. This will have knock-on repercussions on XRP and the market at large. The investor’s attention turned to the GENIUS Act. A measure that would define the direction of crypto law in the United States. The pro-crypto attitude is obvious. Should the GENIUS Act fail, additional legislative developments about cryptocurrencies could be stifled for years. Rendering the market a holding pattern. However, there is conflict in the political scene since people like Bitcoin advocate Senator Lummis could hinder XRP and other cryptocurrencies.
Particularly in the SEC’s case and the impending judgment over whether XRP may be declared a strategic reserve asset. Its price swings reveal how tightly its destiny is bound to legislative and judicial results. Court decisions, investor attitude, and the possible establishment of an XRP spot ETF directly affect XRP’s price action and prognosis; should any resistance levels be breached, there might be notable price movements.
