XRP News Today: SEC Rejects XRP ETF Triggering Price Drop as Criticism Mounts Over Mixed Messaging

The U.S. Securities and Exchange Commission’s recent rejection of a proposed XRP exchange-traded fund has intensified scrutiny over its regulatory approach, contributing to a decline in the cryptocurrency’s price and fueling criticism of inconsistent messaging from officials. The decision, announced amid a broader debate over digital asset frameworks, has left investors and market participants questioning the SEC’s role in stifling innovation while failing to provide clear guidelines for industry participants [1].

XRP, currently trading in a $3 to $4 range, has experienced mixed performance following the setback. Despite the price slump, the token has gained approximately 45% over the past month, reflecting lingering bullish sentiment among traders. Technical analysts highlight a critical resistance level at $4. Breaking this threshold could propel XRP toward $5, representing a potential 25% gain from its recent range. A support level at around $2.45 offers short-term protection, but momentum indicators remain subdued, underscoring the importance of a successful breakout [1].

The SEC’s mixed messaging has become a focal point of criticism. Critics argue that the agency’s enforcement actions—such as its ongoing lawsuit against Ripple Labs—create regulatory ambiguity that hinders market confidence. The rejection of the XRP ETF application, coupled with previous approvals of spot crypto ETFs for assets like Bitcoin and Ethereum, has drawn accusations of inconsistent standards. This perceived double standard has amplified frustration within the crypto community, with some observers suggesting the agency is prioritizing enforcement over fostering a transparent regulatory environment [1].

Market observers are now closely monitoring whether XRP can regain traction amid the uncertainty. While the SEC’s actions have temporarily dampened optimism, analysts note that the token’s technical fundamentals remain resilient. A sustained move above $4 could signal renewed investor interest, particularly as broader market conditions show signs of stabilizing. However, regulatory clarity remains a key determinant for long-term growth. Until the SEC clarifies its stance on crypto products, market participants are likely to remain cautious, balancing opportunities against the risk of further regulatory intervention [1].

The fallout from the ETF rejection highlights the broader challenges facing the crypto sector as it navigates a regulatory landscape in flux. For now, XRP’s trajectory will depend on its ability to overcome critical price levels and the likelihood of a shift in the SEC’s approach. Investors are advised to monitor both technical developments and regulatory updates, as either could significantly influence market sentiment in the near term.

Source: [1] [ETF Rejection Sparks XRP Slump – SEC Under Fire for Mixed Messaging] [https://bitzo.com/2025/07/etf-rejection-sparks-xrp-slump-sec-under-fire-for-mixed-messaging]