- The OCC allows all U.S.-based will be allowed to provide safe custody services for cryptocurrencies
- Ripple price gained on this news to move higher and test a strong confluence of resistance lines at $0.21
- XRP/USD is now correcting lower as sellers look to push the price action below $0.20 again
Ripple (XRP) is trading under pressure today with prices currently trending around 0.2050, or 2% in the red. Ripple surged higher this week after the U.S. Office of the Comptroller of the Currency (OCC) published a letter that will make a significant change in the policy of custody services for digital currencies.
However, the buyers are struggling to sustain losses after hitting an important technical resistance.
A major step forward in crypto adoption
Before July 22, companies that wished to store cryptocurrencies for their customers were required to obtain a license in order to provide this service. The safe deposit of cryptocurrencies like Bitcoin, Ethereum, XRP and so on is very important in terms of crypto adoption.
On Wednesday, the OCC has issued a new letter which says that all licensed banks in the United States are now allowed to provide custodial services for digital currencies. The letter was signed by Jonathan Gould, Senior Deputy Comptroller and Senior Counsel. He wrote that each licensed bank in the US is allowed to store and control the cryptographic keys for wallets for its clients.
In the letter, it is written that secure custody of cryptocurrencies varies in several manners from traditional safe deposit services, given that digital currencies exist only on the blockchain.
“The OCC recognizes that, as the financial markets become increasingly technological, there will likely be increasing need for banks and other service providers to leverage new technology and innovative ways to provide traditional services on behalf of customers,” the letter states.
Banks should now be free to deliver both fiduciary and non-trustee safekeeping services. Gould also wrote that banks will have to incorporate appropriate safety measures to guarantee the secure custody of clients’ funds.
“[The letter reaffirms] reaffirms the OCC’s position that national banks may provide permissible banking services to any lawful business they choose, including cryptocurrency businesses, so long as they effectively manage the risks and comply with applicable law.”
Michael Novogratz, a billionaire and a known cryptocurrency advocate, has been voicing his concerns for a while that the United States could lose its central role in the blockchain and fintech industry in the world.
Technical analysis: Ripple fails at major resistance
Ripple price followed the rest of the crypto market higher this week to briefly trade above the $0.21 mark again. However, the buyers failed to clear this area that hosts numerous resistance lines e.g. the horizontal resistance, the triangle’s upper line and the 200-DMA.
A break above this zone would open the door for much higher levels. Investors will be watching closely to see if a break can happen as Ripple buyers target $0.2360 next. However, this could easily prove to be a failed breakout, which could facilitate a rotation lower to test the triangle’s support line.
All licensed banks in the United States will be allowed to provide safe custody services for cryptocurrencies. This news helped Ripple to move higher this week before the buyers failed to clear the confluence of resistance around the $0.21 handle.