XRP News Today: SEC Moves to Clear Path for Crypto Futures ETFs with New Derivatives Rules

Generated by AI AgentCoin World
Thursday, Jul 31, 2025 8:28 am ET2min read
Aime RobotAime Summary

- U.S. SEC proposes crypto futures ETF rules requiring six months of derivatives trading on platforms like CME or Coinbase.

- New standards exclude meme coins and focus on established assets like XRP, which meets eligibility criteria and has 86% approval probability.

- First approvals expected by late 2025, aligning with regulatory reforms that bring crypto ETPs closer to traditional commodity ETF structures.

- XRP's technical indicators show bullish momentum, with potential to break above $3.70 resistance and approach $5 levels.

- SEC's framework creates structured market access, positioning crypto assets alongside gold in institutional investment portfolios.

The U.S. Securities and Exchange Commission is moving closer to finalizing rules that could pave the way for the approval of crypto futures ETFs. According to Bloomberg analyst Eric Balchunas, the regulator has outlined proposed listing standards focusing on derivatives trading history. Under the new guidelines, cryptocurrencies that have traded futures for at least six months on platforms like Coinbase Derivatives or the Chicago Mercantile Exchange will be eligible for ETP listing [1]. This development opens the door for a broader range of altcoins to gain institutional exposure through ETFs [2].

The proposed standards do not include criteria such as market capitalization, liquidity, or token supply, distinguishing them from the more complex requirements of the Investment Company Act of 1940 [3]. Analysts suggest this approach favors assets with established derivatives markets, ruling out meme coins and less-developed crypto assets [1]. James Seyffart from Bloomberg noted that the Commodity Futures Trading Commission will play a central role in determining eligibility, as the availability of futures contracts is a key requirement under the proposal [2].

Balchunas estimates that the first approvals could come as early as September or October 2025, marking a major milestone in the integration of digital assets into traditional financial markets [3]. This timeline aligns with recent regulatory changes, such as the SEC’s approval of in-kind creation and redemption mechanisms for crypto ETPs, which improve efficiency and bring these products closer to traditional commodity ETFs [2]. The shift is seen as a step toward greater institutional adoption and increased market liquidity.

XRP has emerged as a potential early beneficiary of the new framework. The asset has already met the six-month derivatives trading requirement and has seen a rise in market sentiment. According to Polymarket data, the probability of an XRP ETF approval has climbed to 86%, with Bloomberg analysts estimating an 85% likelihood of a favorable outcome in early fall [3]. Legal uncertainties around XRP remain, but former SEC lawyer Marc Fagel has suggested that the ongoing Ripple legal case could reach a resolution by August 15, potentially clearing the way for regulatory approval [3].

From a technical standpoint, XRP is currently within an ascending channel, with key resistance levels near $3.70–$3.90 and strong support near $2.30–$2.50 [3]. Momentum indicators such as RSI and MACD suggest ongoing bullish pressure. A breakout above the resistance levels could drive the token toward previous highs above $5.

The broader implications of the proposed rule changes extend beyond individual assets. By setting clear listing criteria and enhancing operational efficiency, the SEC is creating a more structured environment for crypto ETPs. Crypto lawyer Bill Morgan has highlighted that the changes align crypto products more closely with traditional assets like gold, which are already widely traded through ETF structures [3]. While the long-term effects on market liquidity and investor access remain to be seen, the current momentum points to a significant shift in how cryptocurrencies are treated in U.S. financial markets.

Source:

[1] Mitrade - https://www.mitrade.com/au/insights/news/live-news/article-3-999429-20250731

[2] 99Bitcoins - https://99bitcoins.com/news/bitcoin-btc/sec-approves-in-kind-redemptions-for-btc-and-eth-etfs/

[3] Coinspeaker - https://www.fool.com/investing/2025/07/30/xrp-ripple-did-it-hasnt-done-2018-foreshadow-move/

[4] Yahoo Finance - https://finance.yahoo.com/news/first-bitcoin-then-ethereum-ripples-070600476.html

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