XRP Drops 1.401% Amid Skepticism from SWIFT's Chief Innovation Officer

XRP's latest price was $2.80, down 1.401% in the last 24 hours. The cryptocurrency has been in the spotlight due to recent developments and discussions within the financial community. Tom Zschach, Chief Innovation Officer at SWIFT, expressed skepticism about Ripple’s technology and the XRP token meeting the standards required by global banks for cross-border settlement. He questioned whether banks would ever be comfortable outsourcing settlement finality to an external token that is not a regulated deposit and does not sit on their balance sheets. Zschach highlighted that while liquidity is important, legal enforceability is another critical factor. He suggested that if tokenized deposits and regulated stablecoins achieve significant scale, banks might see little reason to use an external asset like XRP when they can settle in instruments they already issue and trust.

In a separate discussion, Zschach delved into the broader role of blockchains in finance. He argued that the debate over decentralization often overshadows the more important issue of whether a system aligns with institutional risk management. Zschach compared open blockchains to a “fast engine with no cockpit,” noting that they remain incomplete for institutional use without legal frameworks, privacy safeguards, and regulatory oversight. He explained that the missing “trust layer” is why banks continue to rely on SWIFT, which does not issue its assets, compete with its members, or tilt economics in favor of any institution. Zschach acknowledged that blockchains like Ethereum are part of the solution but emphasized that neutrality in markets also requires governance, regulation, and enforceability. He noted that code and validators alone do not resolve billion-dollar disputes, and that SWIFT has been handling such issues for decades, which is why institutions continue to rely on it. Zschach concluded that blockchains will complement, rather than replace, SWIFT’s role.

In related news, the SEC’s proposed crypto rules for Spring 2025 aim to bring regulatory clarity to the issuance, custody, and trading of crypto assets. The proposed rulemaking package is designed to define which crypto assets and activities fall under securities law, along with possible exemptions and safe harbors for custody and listings. The goal is to provide predictable standards for issuers, exchanges, and custodians while reducing enforcement-driven uncertainty. SEC Chair Paul Atkins emphasized the importance of regulatory clarity to foster crypto industry growth and discourage unlawful practices. The SEC is revisiting past regulatory actions under former Chair Gary Gensler, focusing on smarter and more effective rules. The proposed rules aim to shift from an enforcement-first approach to clear regulatory standards, with defined registration paths, clearer custody obligations, and limited safe harbors for tokenized securities. Public comments from firms including Wintermute will shape the final text, and coordination with the Commodity Futures Trading Commission (CFTC) is expected to minimize overlap. The proposed rules signal a move toward clearer, more predictable oversight for issuers, exchanges, and custodians, and industry participants and stakeholders are encouraged to prepare operationally and engage in the comment process. Expect coordinated developments with the CFTC and continued market feedback to shape final standards.

The resolution of the United States Securities and Exchange Commission (SEC) lawsuit against Ripple concerning XRP represents a major regulatory development. After an extended legal process concluding in August 2025, the parties reached a definitive settlement resulting in the dismissal of all appeals. Critically, the final settlement agreement incorporated judicial findings that sales of XRP on digital asset exchanges do not qualify as securities offerings under US law. This aspect of the ruling provides substantial legal validation for XRP's classification outside the securities framework.

A significant aspect of this legal outcome involves the acknowledged contribution of the XRP community, widely recognized as the "XRP Army." Ripple's deputy general counsel explicitly credited this decentralized group for providing extensive, unpaid research and analysis throughout the protracted litigation. This collaborative effort, leveraging the collective resources of the community, was formally acknowledged by the presiding court as influential in shaping key arguments central to the settlement, highlighting the evolving impact of grassroots crypto communities on high-stakes regulatory disputes.

Despite achieving this regulatory clarity, indicators suggest XRP faces hurdles in broader ecosystem adoption, particularly within the decentralized finance (DeFi) sector. Data tracking protocol activity reveals that the Total Value Locked (TVL) on the XRP Ledger (XRPL) remains relatively low compared to leading blockchain networks. Furthermore, metrics on decentralized exchange volume associated with the XRP Ledger consistently show figures significantly below those observed on competing Layer-1 platforms. This points towards ongoing challenges in stimulating developer engagement and institutional adoption necessary for driving deeper integration and utility within the DeFi landscape.

Technical market analysis concerning XRP focuses on potential future movements. Some observers note the formation of a symmetrical triangle pattern within the recent trading range, suggesting a consolidation phase potentially preceding a directional breakout. Discussions among analysts center on identifying crucial technical thresholds, viewing sustained moves above certain resistance zones as potentially bullish signals for momentum, while emphasizing the importance of holding above established support levels to maintain the current technical structure.

Analysts offer divergent views on XRP's potential trajectory. While some perspectives point to technical indicators and historical patterns suggesting the possibility of significant appreciation from current levels under favorable market conditions, others highlight substantial resistance barriers near key trendlines that could impede upward movement. This analytical divergence reflects differing interpretations of both technical signals and the fundamental implications stemming from the recent legal resolution.