Market
Circle Shifts Headquarters to US Before Upcoming IPO
Circle Internet Financial Ltd., the issuer of the USDC stablecoin, is making a strategic move to re-domicile its legal base. The company plans to move its legal headquarters from the Republic of Ireland to the United States (US).
This decision comes ahead of its highly anticipated initial public offering (IPO). Many see this move as a significant shift for the company as it navigates the regulatory environment and seeks to bolster market confidence.
Moving to the US Might Pose Challenges for Circle
A Bloomberg report recently shared a confirmation from a Circle spokesperson. They confirmed the filing of necessary court paperwork for the move on Tuesday. However, they did not share the reasons for the decision.
BeInCrypto previously reported that Circle had already filed for the IPO to the US Securities and Exchange Commission (SEC) in January. Yet, the company did not disclose the number of shares it plans to dilute or the price range of its shares.
On the other hand, moving to the US may pose challenges for Circle, including stricter taxes and a complex regulatory scene. Indeed, the regulation of cryptocurrencies and stablecoins in the US has been uncertain.
Read more: Top 5 Crypto Companies That Might Go Public (IPO) in 2024
Notably, Ripple Labs, the company behind the XRP cryptocurrency, has faced significant legal challenges with the SEC. This challenge caused Ripple to halt its IPO plans in the US and consider alternatives abroad.
Therefore, Circle’s move suggests a strategic bet on regulatory clarity in the US. Depending on upcoming regulatory decisions, this could either boost or hinder its growth.
Despite potential obstacles, Circle’s CEO, Jeremy Allaire, remains optimistic about the future of stablecoins and their regulatory environment. At the Milken Institute Global Conference 2024, Allaire emphasized the importance of regulatory clarity, scalable technology, and user-friendly applications to widen USDC adoption and integration.
“I’ve always said you need regulatory clarity. You need the technology to become much more scalable and useable. And then, you need the people, the mainstream applications that people are going to be interacting with this, whether you are a business accepting a payment or an end user, you need those to connect up to that. All those three have been happening. We’re getting regulatory clarity on payment stablecoins all around the world and almost every jurisdiction we have a payment stablecoin act that’s at the proverbial one yard line here in the US,” Allaire said.
Allaire’s confidence is further evidenced by Circle’s collaborations with traditional finance giants such as BlackRock. Last month, Circle announced a new exchange feature for BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) investors. They can now exchange their tokenized real-world assets for USDC.
According to CoinGecko data, USDC is the second-largest stablecoin in terms of market capitalization. As of May 15, USDC has a market capitalization of $32.86 billion.
This represents nearly 21% of the stablecoin market share. It trails behind Tether’s USDT, which has a market capitalization of $110.86 billion and a 70.75% market share.
Read more: A Guide to the Best Stablecoins in 2024
In 2022, USDC and USDT were in close competition. In July 2022, USDC held over 40% of the market share, compared to USDT’s roughly 50%.
However, 2023 brought challenges for Circle, particularly due to banking issues in the US. Part of USDC’s reserves were held with Silicon Valley Bank, which faced financial troubles. This caused USDC to temporarily lose its peg, raising concerns among users and investors.
As Circle prepares for its IPO and re-domiciles to the US, its actions reflect a strategic pivot to align with US financial regulations and market dynamics. With its strong industry partnerships and commitment to regulatory clarity, this move also positions Circle to strengthen its place in the stablecoin market.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
On Friday, Solana (SOL) soared to a new all-time high (ATH), now trading at approximately $261. This breakthrough surpasses its previous peak set in November 2021.
Solana’s rise to a new ATH marks an increase of over 32 times from its lows recorded in December 2022.
Solana Hits All-Time High as Gary Gensler Plans Resignation
Solana’s path to this new high has been anything but smooth. After reaching its previous high in 2021, the platform faced a downturn in 2022 amid a broader crypto bear market, further exacerbated by technical issues and network downtimes.
The collapse of FTX in November 2022 pushed Solana’s price down to around $8.
However, Solana has since made a remarkable recovery, increasing more than 32-fold from its low. Now, Solana enthusiasts believe that SOL could eventually outpace Ethereum (ETH) in market capitalization.
“Solana has been at an all-time high by market cap for a while actually. Now, we’re finally in price discovery. The flippening is coming,” Birch, the founder of PathCrypto, said.
The surge in Solana’s market value coincides with the news of SEC Chairman Gary Gensler’s planned resignation, slated for January 20, 2025, as Donald Trump assumes office.
Known for his strict regulatory stance on cryptocurrencies, Gensler’s departure signals a potential shift toward a more crypto-friendly administration. Consequently, this political change is stoking speculations about the approval of a Solana exchange-traded fund (ETF). According to Fox Business journalist Eleanor Terrett, the SEC has begun engaging with issuers to explore the possibility of a Solana ETF.
“Talks between SEC staff and issuers looking to launch a Solana spot ETF are “progressing” with the SEC now engaging on S-1 applications. Recent engagement from staff, coupled with the incoming pro-crypto administration, is sparking a renewed sense of optimism that a Solana ETF could be approved sometime in 2025,” Terrett claimed.
Previous efforts to launch a Solana ETF were stalled by regulatory roadblocks, often stopping early in the process. However, the changing political environment and the SEC’s increased openness have reignited hopes within the crypto community. Recent filings for a Solana ETF by Canary Capital and BitWise reflect a growing interest and anticipation for regulatory approval.
Despite these encouraging developments, the odds of a Solana ETF approval in 2024 remain low, with Polymarket estimates placing it at around 4%.
Meanwhile, the crypto community is also closely watching Bitcoin as it approaches the highly anticipated $100,000 mark. On Friday, Bitcoin recorded a new high of about $99,300. This milestone is viewed as a pivotal moment for Bitcoin and could impact other cryptocurrencies, including Solana.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
XRP price rallied above the $1.15 and $1.20 resistance levels. The price is up over 25% and might rise further above the $1.420 resistance.
- XRP price started a fresh surge above the $1.20 resistance level.
- The price is now trading above $1.250 and the 100-hourly Simple Moving Average.
- There was a break above a key bearish trend line with resistance at $1.1400 on the hourly chart of the XRP/USD pair (data source from Kraken).
- The pair is up over 25% and it seems like the bulls are not done yet.
XRP Price Eyes Steady Increase
XRP price formed a base above $1.050 and started a fresh increase. There was a move above the $1.150 and $1.20 resistance levels. It even pumped above the $1.25 level, beating Ethereum and Bitcoin in the past two sessions.
There was also a break above a key bearish trend line with resistance at $1.1400 on the hourly chart of the XRP/USD pair. A high was formed at $1.4161 and the price is now consolidating gains. It is trading above the 23.6% Fib retracement level of the upward move from the $1.0649 swing low to the $1.4161 high.
The price is now trading above $1.30 and the 100-hourly Simple Moving Average. On the upside, the price might face resistance near the $1.400 level. The first major resistance is near the $1.420 level. The next key resistance could be $1.450.
A clear move above the $1.450 resistance might send the price toward the $1.50 resistance. Any more gains might send the price toward the $1.550 resistance or even $1.620 in the near term. The next major hurdle for the bulls might be $1.750 or $1.80.
Are Dips Supported?
If XRP fails to clear the $1.420 resistance zone, it could start a downside correction. Initial support on the downside is near the $1.3350 level. The next major support is near the $1.2850 level.
If there is a downside break and a close below the $1.2850 level, the price might continue to decline toward the $1.240 support or the 50% Fib retracement level of the upward move from the $1.0649 swing low to the $1.4161 high in the near term. The next major support sits near the $1.20 zone.
Technical Indicators
Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now above the 50 level.
Major Support Levels – $1.3350 and $1.2850.
Major Resistance Levels – $1.4000 and $1.4200.
ETF issuer WisdomTree’s European division just announced a new ETP based on XRP. This product is currently available in four EU countries, which has led XRP’s price to jump slightly.
ETPs are a common issuer strategy to earn revenue without ETF approval, but Europe will not necessarily approve one even if the US does so.
WisdomTree’s XRP ETP
WisdomTree, one of the Bitcoin ETF issuers in the US, announced that its European branch is offering an exchange-traded product (ETP) based on XRP. This new product is currently available in Germany, Switzerland, France, and the Netherlands. A growing number of issuers have filed for an XRP ETF, but WisdomTree is taking a slightly different tack.
“The WisdomTree Physical XRP ETP offers a simple, secure, and low-cost way to gain exposure to XRP, one of the largest cryptocurrencies by market capitalization. Backed 100% by XRP, XRPW is the lowest-priced XRP ETP in Europe, providing direct spot price exposure,” the announcement claimed.
The possibility of an official XRP ETF is growing with the current bull market, and Ripple CEO Brad Garlinghouse considers it “inevitable.” Still, it hasn’t happened yet, and ETP offerings allow issuers to somewhat address customers’ requirements. BitWise, which has also filed for an XRP ETF in the US, recently acquired a European ETP issuer to enter the same market.
WisdomTree, however, is no stranger to this market strategy. In May this year, it won approval to offer ETPs based on Bitcoin and Ethereum to British investors.
The UK has not yet approved a full ETF for either of these assets, but WisdomTree still gained market access. Even a fraction of the XRP market could also prove lucrative; the asset’s value spiked today.
WisdomTree Europe’s strategy page does not describe any further actions upon full approval. Even if the US approves an XRP ETF under the SEC’s new leadership, that won’t necessarily benefit WisdomTree’s European branch. For now, these ETPs built on XRP will have to suffice for this market.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
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