XRP Today's News: Market Structure Bill Criticized, Bulls Hold Firm at $2 Without Breaking

XRP Retreats Before Senate Hearing, Profit Taking Triggered by Mixed Bill Evaluations. Coinbase CEO Armstrong Criticizes “Better No Bill Than a Bad Bill,” Citing Ban on Tokenized Equity, DeFi Privacy Erosion, CFTC Weakening, and Stablecoin Rewards Cancellation. XRP Holds $2, Support from 50-Day EMA at 2.0796, Medium-Term Target $3.0, Long-Term $3.66.

Coinbase CEO Criticizes Four Major Flaws of the Bill

The U.S. Senate Banking Committee released bipartisan text of the “Market Structure Bill” on January 13, laying the groundwork for a committee vote on January 15. Hopes for crypto-friendly legislation pushed XRP to reach a high of $2.4151 on January 6, but it then briefly fell below $2.1. However, due to negative sentiment towards the bill and cautious investor stance ahead of the January 15 review, XRP dropped to negative territory mid-week.

Coinbase CEO Brian Armstrong criticized the committee’s draft bill, stating: “After reviewing the Senate Banking Bill draft over the past 48 hours, Coinbase regrets to say we cannot support the current version. We appreciate the hard work of Senators in reaching bipartisan consensus, but this version falls far short of the current state of the industry. We would rather have no bill than a bad one.”

Armstrong pointed out several issues with the bill: it effectively bans tokenized equity, the DeFi ban grants the government unlimited access to your financial records and erodes privacy, weakens CFTC authority and yields to SEC, and the proposed amendments would cancel stablecoin reward mechanisms and allow banks to prohibit competitors. These criticisms reveal deep issues within the bill text that could face resistance in the final vote.

Four Controversial Provisions of the Market Structure Bill

Tokenized Equity Ban: Effectively prohibits tokenization of traditional assets, stifling RWA innovation

DeFi Privacy Erosion: Government can access financial records infinitely, contradicting decentralization principles

CFTC Power Weakening: Crypto regulation shifts from friendly CFTC to strict SEC

Stablecoin Rewards Cancellation: Bans stablecoins from profit-sharing with users, reducing competitiveness

Given the lawsuit between SEC and Ripple, Armstrong’s view that the bill grants SEC more power than CFTC may influence buyers’ willingness to purchase XRP. After nearly five years of legal battles, the U.S. Federal Court of Appeals approved Ripple and SEC’s withdrawal of their appeals in August 2025. Importantly, SEC withdrew its appeal against Judge Torres’s July 2023 ruling, which found XRP’s programmatic sales did not meet the Howey test. The court’s decision paves the way for a U.S. XRP spot ETF market and allows Ripple to expand its US operations.

Legislation granting SEC greater authority could pose political risks to XRP and the broader crypto market. An anti-cryptocurrency US government might establish an agency to challenge digital assets through legal means. This systemic risk is a long-term threat that XRP investors must remain vigilant about.

Ripple CEO Opposes and Battles at the $2 Level

(Source: Trading View)

Despite Armstrong’s concerns, other market participants are less critical of the committee’s draft. Ripple CEO Brad Garlinghouse commented: “Although late, the move by Senator Tim Scott and the Banking Committee on market structure is undoubtedly a significant step forward in providing a practical framework for crypto while continuing to protect consumer rights. Clear rules beat chaos, and the success of this bill is the success of crypto.”

This divergence between Coinbase and Ripple is rare. Both are leading companies in the crypto industry and have litigated with the SEC, so their positions on regulation are expected to align. However, Garlinghouse’s support for the bill may be based on: first, Ripple’s lawsuit has concluded, and regulatory certainty is its top priority; even with flaws, a bill is better than no bill. Second, there may be provisions favorable to XRP that haven’t been publicly discussed. Third, Garlinghouse’s stance is a political strategy to build good relations with the Senate and influence the final text.

On January 14, XRP fell 1.24%, partially retracing the previous day’s 5.43% gain, closing at $2.1376. The token’s performance lagged the overall crypto market, which rose 1.09%. Despite the pullback, XRP remains above the 50-day moving average but below the 200-day moving average. The moving averages indicate short-term bullishness but long-term bearishness. Key technical levels to watch include: support at $2.0, $1.75, then $1.50; 50-day EMA support at $2.0796; 200-day MA resistance at $2.3273; resistance levels at $2.5, $3.0, and $3.66.

Holding the $2 psychological support is crucial for short- to medium-term outlook. Breaking above $2.2 could pave the way for testing the 200-day MA. If the price continues above the 200-day MA, it signals a trend reversal and potential testing of resistance at $2.5. Mid-term (4-8 weeks) target $3.0, long-term (8-12 weeks) target $3.66.