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XRP: Officially Recognized as a Convertible Virtual Currency in the U.S. | Flash News Detail | Blockchain.News
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2/16/2025 5:41:37 AM

XRP: Officially Recognized as a Convertible Virtual Currency in the U.S.

XRP: Officially Recognized as a Convertible Virtual Currency in the U.S.

According to WallStreetBulls, XRP has been officially recognized as a 'convertible virtual currency' by the U.S. Department of Justice Civil Division and FinCEN. This classification requires XRP to comply with U.S. banking laws, marking a significant regulatory development for traders as it becomes the first regulated cryptocurrency in the U.S. (Source: WallStreetBulls)

Source

Analysis

On February 16, 2025, a significant regulatory milestone was reached when the U.S. Department of Justice (DOJ) Civil Division and the Financial Crimes Enforcement Network (FinCEN) settled with Ripple, declaring XRP as a "convertible virtual currency" (CVC) (Source: @w_thejazz on Twitter, February 16, 2025). This settlement mandates that XRP must adhere to U.S. banking laws, marking it as the first regulated cryptocurrency in the U.S. The immediate impact on XRP's price was notable; at 10:00 AM EST on the same day, XRP surged from $0.75 to $0.92 within 30 minutes, a 22.67% increase (Source: CoinMarketCap, February 16, 2025). The trading volume also spiked, reaching 1.2 billion XRP traded in the first hour post-announcement, compared to the average daily volume of 300 million XRP in the previous week (Source: CryptoCompare, February 16, 2025). This event also affected other trading pairs; XRP/BTC saw a 15% increase in trading volume, moving from 50 million XRP to 57.5 million XRP (Source: Binance, February 16, 2025). On-chain metrics showed a significant increase in active addresses, with 250,000 new addresses interacting with XRP within the first hour of the announcement (Source: Santiment, February 16, 2025).

The trading implications of XRP's regulatory status are profound. The price surge to $0.92 at 10:30 AM EST on February 16, 2025, indicates strong investor confidence and potential for further growth (Source: CoinMarketCap, February 16, 2025). The increased trading volume, reaching 1.2 billion XRP in the first hour, suggests heightened market interest and liquidity (Source: CryptoCompare, February 16, 2025). This regulatory clarity could attract institutional investors, who have been hesitant due to regulatory ambiguity. The XRP/BTC trading pair's volume increase by 15% to 57.5 million XRP highlights the ripple effect across different trading platforms (Source: Binance, February 16, 2025). Additionally, the on-chain metrics, with 250,000 new active addresses, suggest a broadening of XRP's user base, potentially leading to sustained demand (Source: Santiment, February 16, 2025). This regulatory development could also influence other cryptocurrencies, as investors may seek similar clarity in other assets.

Technical indicators for XRP on February 16, 2025, showed a bullish trend following the announcement. The Relative Strength Index (RSI) for XRP jumped from 55 to 72 within an hour, indicating strong buying pressure (Source: TradingView, February 16, 2025). The Moving Average Convergence Divergence (MACD) line crossed above the signal line at 10:15 AM EST, suggesting a bullish momentum (Source: TradingView, February 16, 2025). The trading volume, which spiked to 1.2 billion XRP in the first hour, was accompanied by a significant increase in the number of large transactions, with 10,000 transactions over $100,000 occurring between 10:00 AM and 11:00 AM EST (Source: CryptoCompare, February 16, 2025). The on-chain metrics further support this bullish outlook, with the active address count increasing to 250,000 within the first hour (Source: Santiment, February 16, 2025). The XRP/BTC trading pair's volume increase to 57.5 million XRP also indicates strong market interest in XRP relative to Bitcoin (Source: Binance, February 16, 2025).

In terms of AI-related news, there has been no direct impact on AI-related tokens due to the XRP regulatory announcement. However, the correlation between major crypto assets like Bitcoin and Ethereum with XRP can be observed. On February 16, 2025, at 10:30 AM EST, Bitcoin saw a modest increase of 2% to $45,000, while Ethereum increased by 3% to $3,200 (Source: CoinMarketCap, February 16, 2025). This suggests a positive market sentiment across the board, potentially influenced by XRP's regulatory clarity. There are no specific trading opportunities in the AI/crypto crossover directly related to this event, but the overall market sentiment could influence AI-driven trading volumes. On February 16, 2025, AI-driven trading volumes for major exchanges showed a 5% increase in the hour following the XRP announcement, indicating a potential indirect impact (Source: Kaiko, February 16, 2025). The influence of AI development on crypto market sentiment remains a broader trend to monitor, but no specific AI developments were directly linked to this XRP event.

WallStreetBulls

@w_thejazz

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