Cryptocurrencies witnessed further declines yesterday and today morning. Bitcoin headed below the $27,500 level, and Ethereum also failed to consolidate above the $1,640 level as well.
While there does not seem to be much to move the cryptocurrency market so far this week other than more concerns about the possibility of the Federal Reserve raising interest rates for a final time by 25 basis points this year, with the job openings (JOLTs) numbers for the month of August, which apparently exceeded expectations, singling more robust labor market. While these numbers contributed to strengthening ten-year bond yields, which rose to new record highs that we have not seen since 2007.
On the positive side, the court denied the SEC’s request to appeal an earlier ruling, which was a partial victory for Ripple Labs, that its XRP token sales to retail investors were not registered securities. While the court said that the authority was unable to assess sufficient justifications for the appeal.
This court decision added more positive sentiment to Ripple investors at the time and pushed the XRP price to record gains of more than 7% with the announcement.
In a related context, Ripple Labs has obtained a full license to conduct payment settlement work using its crypto network in Singapore. While the company’s CEO said that Singapore is striking the balance between innovation, consumer protection and sustainable growth, he added that Singapore is a leading hub of financial technology and digital assets.
The new license for Ripple Labs to operate in Singapore may enhance the adoption of cryptocurrency technology, especially among institutional investors, which the company particularly aspires to enhance as it seeks to be a global network in settling international payments.
However, the sustainability of the judicial conflict between law enforcement authorities on the one hand and companies operating in the sector on the other hand may delay and hinder this widespread adoption, especially in the United States, as regulatory concerns may weaken the confidence of those dealing in the sector until the features of the regulatory and legislative environment become clear.