- CME Group has added an XRP and Solana futures page to its staging range, with the products scheduled to launch on February 10.
- Although the page was eventually removed, the potential launch could cause an influx of new cryptocurrency applications for the XRP and Solana ETFs.
- XRP continues to strengthen as it looks to move above the downtrend line resistance.
The Chicago Mercantile Exchange (CME) is allegedly planning to launch Ripple’s XRP and Solana (SOL) futures contracts following a now-deleted post on a staging website detailing how trading works for both assets.
CME Group will likely launch XRP and Solana futures contracts
The Chicago Mercantile Exchange is allegedly planning to launch XRP and Solana futures following a post on its alleged demo site.
beta.cmegroup posted a now-deleted page detailing XRP and Solana futures. The page also claimed that contracts will begin trading on February 10.
“Regulated and capital-efficient futures trading on two leading cryptocurrencies with new SOL and XRP futures, launching on February 10,” the scaling subdomain said.
She also noted that the tokens will be available in standard and medium-sized contracts, pending review by regulators.
However, the site later removed the post, sparking suggestions it may have been fake.
Bloomberg ETF analyst James Seyphart suggested this could be true but would need to be confirmed by official word from the exchange.
“At the same time, I will also not be tweeting ‘confirmed’ until I see an official notification from CME. Hahaha,” James Seyphart wrote in an X post on Wednesday.
X account alias Summers insisted the website belonged to the Chicago Mercantile Exchange after initial information regarding futures was first shared.
“It’s their own staging process, and they’ve been tracking it for some time; they’re always adding new products in there before announcing them,” Summers replied to Seyphart.
A positive confirmation from the Chicago Mercantile Exchange could spark a wave of new filings for both XRP and Solana futures ETFs.
This could also speed up SEC approval of asset managers’ ETF filings for both cryptocurrencies.
The SEC has historically relied on CME’s oversight system to mitigate the risks of fraud. This was a key factor in the SEC approving Bitcoin futures ETFs before it began considering applications for spot Bitcoin ETFs.
The potential approval of XRP and Solana futures could speak volumes about how the SEC now classifies both cryptocurrencies with a change in its leadership following the appointment of Commissioner Mark Ueda as acting chair.
XRP continues to strengthen as it seeks to reach a new all-time high
XRP saw $6.66 million worth of futures liquidations in the past 24 hours, according to Coinglass data. The total value of long and short liquidations was $3.92 million and $2.73 million, respectively.
XRP continued to consolidate within the $2.90 and $3.30 range, as its trading volume declined in the past three days. This decline confirms the decline in public enthusiasm since the inauguration of President Trump.
XRP/USDT 4-hour chart
On the upside, XRP is facing resistance near the downtrend line extending from January 16. If it overcomes this resistance, the remittance-based token could rise to $4.20, but it would have to clear its all-time high hurdle of $3.55 before such a move is possible. come true.
Rejection at the falling trend line resistance could see XRP fall to find support near the $2.90 level. A break above the $2.90 level would send XRP to $2.62.
The Relative Strength Index (RSI) and the Stochastic Momentum Index (RSI) are located just above their neutral levels, indicating slightly dominant bullish momentum.
Closing the daily candlestick below $2.33 will invalidate the hypothesis.
Frequently asked questions about the SEC lawsuit against Ripple
It depends on the transaction, according to the court ruling on July 14, 2023: For institutional investors or over-the-counter sales, XRP is a security. For retail investors who purchased the token through automated sales on exchanges, on-demand liquidity services, and other platforms, XRP is not a security.
The US Securities and Exchange Commission (SEC) has accused Ripple and its executives of raising more than $1.3 billion through an unregistered asset offering for the XRP token. While the judge ruled that automated sales are not considered securities, sales of XRP tokens to institutional investors are in fact investment contracts. In this latest case, Ripple violated US securities law and had to pay a civil fine of $125 million.
The ruling offers a partial win for both Ripple and the SEC, depending on what one looks at. Ripple has made a big win over the fact that automated sales are not considered securities, and this could bode well for the broader cryptocurrency sector, as most of the assets sought by SEC holders are handled by decentralized entities that have mostly sold their tokens. For retail investors, experts say across exchange platforms. However, the ruling doesn’t help much in answering the key question of what makes a digital asset a security, so it’s not yet clear whether this lawsuit will set a precedent for other open cases affecting dozens of digital assets. Topics remain such as what is the appropriate degree of decentralization to avoid the “security” label or where to draw the line between institutional and software sales.
The Securities and Exchange Commission has intensified its enforcement actions towards the blockchain and digital assets industry, filing charges against platforms such as Coinbase or Binance for allegedly violating US securities law. The Securities and Exchange Commission (SEC) claims that the majority of crypto assets are securities and therefore subject to strict regulation. While defendants could use parts of the Ripple ruling to their advantage, the SEC could also find reasons in it to maintain its current strategy of regulation through enforcement.
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