Search ForexCrunch
  • BitLicense architect urges US regulators to be more active.
  • XRP/USD drops below $0.2400 handle amid global correction on the market.

XRP, the third-largest digital asset with the current market value of $10.5 billion, has gained over 3.5% in the recent 24 hours to trade at $0.2371. XRP/USD has retreated from the recent high, though it is still moving within a clear bullish channel in sync with the cryptocurrency market.

BitLicense architect urges regulators to clarify the rules of the game

Benjamin Lawsky an architect of New York’s BitLicense, was introduced in 2014, and now a director on Ripple’s Board, is surprised that the US regulators failed to develop new guidelines to bring some clarity and confidence to the new and fast-evolving industry. He believes that the lack of regulatory initiative in the United States allowed other countries to play the leading role. Thus, he pointed out to the recent efforts of Singapore’s Monetary Authority Service (MAS) that generated progress and traction around the globe. He praised Singapore for creating two separate licenses for businesses of different sizes. He pointed out that that was something BitLicense lacked.

BitLicense is the permission obtained by New York companies working in a cryptocurrency-related business. It provides a definition of a digital asset business and sets the requirements for operation. 

Lawsky expects that many regulators in large states, such as California, would follow the lead and develop a regulatory framework that can be adopted by smaller states. He also noted an important role of such jurisdictions as Japan, Hong Kong, UAE and a number of Latin American countries.

XRP/USD: technical picture

XRP/USD bottomed at $0.2136 on January 24 and has been gaining ground ever since. On the intraday charts, the initial support is created by SMA50 1-hour at $0.2335. It is closely followed by the middle line of 4-hour Bollinger Band at $0.2324.  Once this area is cleared, the sell-off may be extended towards psychological $0.2300 and a confluence of SMA100 and SMA200 1-hour at $0.2280.

On the upside, if the coin manages to settle above $0.2400, the next bullish target of $0.2500 will come into focus. It is followed by the recent high of $0.2540 and psychological barrier $0.2600 with SMA200 daily located on the approach to this resistance area.

XRP/USD 1-hour chart