US Treasury Secretary Gives Greenlight to ETFs
Amid a frenzy of activity on Capitol Hill, the US administration delivered more good news for the crypto market. US Treasury Secretary Scott Bessent and the Internal Revenue Service (IRS) made a significant announcement on the eve of Canary Fund’s XRP-spot ETF launch.
Treasury Secretary Bessent made an announcement on X (formerly Twitter), stating:
“Today, the US Treasury and the IRS issued new guidance giving crypto-exchange-traded products (ETPs) a clear path to stake digital assets and share staking rewards with their retail investors. This move increases investor benefits, boosts innovation, and keeps America the global leader in digital assets and blockchain technology.”
The greenlight for crypto staking and the IRS’s recognition could enhance clarity for institutional investors seeking crypto exposure.
Consensys lawyer Bill Hughes, formerly with the US Department of Justice, commented on the announcement, stating:
“The impact on staking adoption should be significant. This safe harbor provides long-awaited regulatory and tax clarity for institutional vehicles such as crypto ETFs and trusts, enabling them to participate in staking while remaining compliant. It effectively removes a major legal barrier that had discouraged fund sponsors, custodians, and asset managers from integrating staking yield into regulated investment products.”
While the regulatory clarification may not directly affect the seven XRP-spot ETFs awaiting launch, XRP remains sensitive to crypto-related regulatory developments.
Technical Outlook: Key XRP Price Levels
XRP jumped 6.65% on Monday, November 10, building on the previous day’s 3.48% rally, closing at $2.5243. The token outperformed the broader crypto market, which advanced 1.16%.
Despite reclaiming the $2.5 level, XRP remained below the 50-day and 200-day Exponential Moving Averages (EMAs), suggesting a moderately bearish bias.
Nevertheless, certain events could significantly change the narrative.
Key technical levels to watch include:
- Support levels: $2.5, $2.35, $2.2, $2.0, and $1.9.
- 50-day EMA resistance: $2.5644
- 200-day EMA resistance: $2.5846.
- Resistance levels: $2.62, $2.8, $3.0, and $3.66.