May 21, 2025 — The U.S. Securities and Exchange Commission (SEC) has once again deferred its decisions on pending cryptocurrency ETF applications, intensifying market unease, especially for assets like XRP that remain entangled in regulatory challenges. While Bitcoin (BTC) extended its rally, surpassing $106,000, XRP slipped under pressure, highlighting the diverging fortunes in the digital asset space.
XRP Faces Fresh Headwinds from SEC Delays and Legal Ambiguity
Despite growing mainstream adoption, XRP remains at the mercy of regulatory developments. The SEC’s decision to delay several key crypto ETF rulings—citing procedural reviews and the need for public feedback—has reignited uncertainty for Ripple Labs and its ongoing battle over XRP’s legal classification.
Notably, the SEC has yet to finalize its stance on spot XRP ETFs, keeping institutions and retail investors on edge. Legal analysts suggest these delays may be linked to broader enforcement actions and upcoming court filings in the Ripple v. SEC lawsuit, which remains unresolved despite partial judicial clarity in 2023.
Bitcoin Soars as ETF Inflows and Legislative Progress Signal Bullish Momentum
In stark contrast, Bitcoin continued its upward trajectory, buoyed by strong inflows into BTC spot ETFs and optimism around crypto legislation. On May 20, BTC closed at $106,856, a new record, boosted by a net $667.4 million in ETF inflows the previous day.
According to Farside Investors, the following funds saw notable inflows:
- Fidelity Wise Origin Bitcoin Fund (FBTC): $23.3 million
- ARK 21Shares Bitcoin ETF (ARKB): $6.4 million
- Grayscale Bitcoin Mini Trust (BTC): $6.2 million
- Bitwise Bitcoin ETF (BITB): $5.8 million
Excluding BlackRock’s pending iShares Bitcoin Trust (IBIT), total daily ETF inflows on May 20 were $41.7 million, reinforcing bullish investor sentiment.
GENIUS Act Passes Senate, Opens Door for Broader Crypto Reforms
Fueling further optimism was the passage of the GENIUS Act in the U.S. Senate on May 19, backed by a bipartisan shift that saw 16 Democrats flip their votes. The bill, which aims to create a framework for digital asset innovation and regulatory clarity, is now expected to pave the way for other landmark proposals—most notably, the Bitcoin Reserve Act.
Introduced again by Senator Cynthia Lummis, the Bitcoin Act would authorize the U.S. Treasury to accumulate 1 million BTC over five years, held under a statutory 20-year lock-up. If passed, this could impose substantial supply constraints on BTC, driving further price gains.
John E. Deaton, a prominent crypto attorney and amicus curiae in the Ripple case, emphasized the bill’s broader significance:
“Without the GENIUS Act, market structure reforms might stall until 2029, depending on the political landscape post-election.”
Market Outlook: Regulatory Clarity vs. Legislative Momentum
For XRP:
- Bearish pressures persist due to ETF delays, SEC ambiguity, and lack of near-term legal closure.
- Price could remain range-bound unless positive litigation developments emerge.
For BTC:
- Bullish momentum is supported by growing institutional demand, favorable legislation, and ETF success.
- Potential breakout toward $109,312, the next major resistance level.
For the Market:
- Broader crypto adoption hinges on regulatory clarity and bipartisan legislative action.
- Any disruption in ETF flows or unfavorable rulings could spark near-term volatility.
Summary
As regulatory uncertainty drags on XRP, Bitcoin continues to gain ground, buoyed by ETF enthusiasm and legislative progress in Washington. The contrasting dynamics underscore the growing divergence between crypto assets tied up in legal ambiguity and those riding the wave of institutional acceptance.
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