XRP News Today: SEC reverses Bitwise ETF approval over altcoin compliance concerns XRP falls 7%

The U.S. Securities and Exchange Commission (SEC) has sparked uncertainty in the cryptocurrency market by initially approving Bitwise’s BITW ETF conversion on July 7, 2025, only to reverse the decision hours later under Rule 431(e), citing compliance concerns with altcoins [1]. The ETF, which includes XRP as a holding, is now in regulatory limbo as the SEC imposes a trading pause to address unresolved legal and compliance issues. This abrupt reversal mirrors the agency’s past handling of altcoin-related ETFs, such as the Grayscale Digital Large Cap ETF, and has intensified scrutiny over its approach to crypto assets beyond Bitcoin and Ethereum.

The regulatory turbulence has directly impacted XRP’s price, which dropped by 7% to around $3.26 following the SEC’s decision [2]. On lower timeframes, the token shows signs of stabilization, consolidating within a narrow range between $3.26 and $3.57. Analysts like Casi Trades note that this price action aligns with expected patterns, with a potential target of $3.21 ahead [3]. Technical indicators suggest that a breakout—either to the upside or downside—could occur if XRP breaches key levels. A sustained move above $3.57 with strong volume might push the price toward $3.75, potentially testing the $4 threshold. Conversely, further weakness could see the token fall to $3.10 or retest $3.20 if it struggles to hold above $3.40 [4].

The SEC’s use of Rule 431(e), which allows trading suspensions for unresolved legal or factual disputes, highlights the regulatory hurdles for altcoin-based ETFs. Bitwise’s ETF, while primarily holding Bitcoin and Ethereum, faced particular scrutiny due to XRP’s inclusion. Legal experts have emphasized the SEC’s focus on compliance risks associated with non-major cryptocurrencies, which are viewed as less established and more prone to market manipulation [5]. This has raised questions about the agency’s approval criteria, with some arguing the framework disproportionately favors dominant cryptocurrencies.

Despite the immediate regulatory uncertainty, the initial approval of the ETF is seen as a milestone for XRP. The decision aligns with the 85/15 rule, requiring 85% of a fund’s assets to be invested in the underlying security. However, the subsequent pause has created ambiguity about the SEC’s long-term strategy for crypto products, particularly as ongoing lawsuits and appeals continue to shape the legal landscape [6]. The agency’s ongoing litigation with Ripple Labs further complicates the regulatory environment, though some experts predict the SEC may eventually drop its appeal against the company [7]. A resolution in favor of Ripple could bolster XRP’s inclusion in regulated financial products and influence its price trajectory.

Market participants are advised to monitor both the SEC’s enforcement timeline and the broader crypto ETF approval process. While short-term traders face uncertainty due to the consolidation phase and regulatory overhang, long-term optimism among XRP supporters remains tied to its growing institutional adoption and role in cross-border payments. Analysts caution that prolonged regulatory indecision may delay a clearer price direction until a definitive regulatory stance emerges [8].

Source:

[1] [title] [https://www.ainvest.com/news/xrp-news-today-sec-approves-pauses-bitwise-crypto-etf-rule-431-altcoin-concerns-2507/]

[2] [title] [https://m.economictimes.com/news/international/us/xrp-sinks-2-again-as-sec-delays-bitwise-crypto-etf-is-the-dip-a-red-flag-or-a-golden-buy-signal-heres-the-2025-xrp-price-prediction-you-need-to-see/amp_articleshow/122859722.cms]

[3] [title] [https://coinpedia.org/news/ripple-price-prediction-as-sec-approves-and-pauses-bitwise-etf-holding-xrp/]

[4] [title] [https://cryptorank.io/news/feed/9595a-xrp-price-prediction-buy-the-dip-or-wait]

[5] [title] [https://www.fxempire.com/forecasts/article/xrp-news-today-xrp-etf-in-limbo-as-sec-stay-order-clouds-outlook-btc-hits-120k-1535525]

[6] [title] [https://www.ainvest.com/news/xrp-news-today-sec-approves-bitwise-crypto-etf-pauses-activation-legal-limbo-85-15-rule-compliance-2507/]

[7] [title] [https://www.mitrade.com/insights/news/live-news/article-3-980655-20250723]

[8] [title] [https://coincentral.com/bitwise-etf-faces-sudden-pause-after-sec-greenlight/]