While major cryptocurrencies like Bitcoin and Ethereum face headwinds, XRP has demonstrated notable resilience, consistently trading above the psychologically significant $2.00 level in December 2025. This relative strength is underpinned by a confluence of fundamental developments: surging institutional investment via regulated ETFs, a conditional banking license for Ripple, and advancing crypto legislation in Washington. Despite some technical pressure, the foundational landscape for the asset has improved markedly.
Legislative Momentum Builds on Capitol Hill
A significant catalyst for the sector is progressing legislation. Senators Gillibrand and Lummis have announced they will introduce the full draft of a comprehensive crypto regulatory framework this week, with hearings and a potential vote to follow. Market strategist Crypto Tice described this as “the biggest opportunity the US has ever had for nationwide crypto regulation.” Clear rules are seen as a potential unlock for substantial institutional capital. Historical precedent supports this optimism; when a draft of this bill passed the House of Representatives in July 2025, XRP’s price surged by nearly 15 percent.
Conditional Banking Charter Marks a Regulatory Milestone
In a landmark decision for a crypto-native company, the Office of the Comptroller of the Currency (OCC) has granted Ripple a conditional charter to operate as a federally supervised bank. Ripple CEO Brad Garlinghouse called the approval a “massive step forward.”
Analysts anticipate the charter will open new avenues for XRP in cross-border payments and institutional solutions. The move particularly benefits Ripple’s proprietary stablecoin, RLUSD, which will now operate under both federal and state-level oversight.
Spot ETFs Attract Sustained Institutional Capital
Since their launch, U.S.-listed spot XRP ETFs have recorded net inflows approaching $975 million, supported by an impressive streak of 19 consecutive days of positive flows. In the week ending December 12 alone, $87.5 million entered these regulated investment vehicles.
Steven McClurg, CEO of Canary Fund, noted that despite launching later, XRP ETFs now hold more assets under management than their Solana ETF counterparts. This suggests a clear institutional preference for XRP within regulated investment frameworks. Franklin and Bitwise dominate the landscape, attracting the bulk of daily inflows.
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Major Holders Accumulate Significant Stakes
On-chain data reveals substantial accumulation by large holders, often referred to as “whales.” Wallets holding over one billion XRP increased their collective balance from 25.36 billion to 25.42 billion tokens between December 9 and 14. Furthermore, addresses holding between 100 million and one billion XRP reversed a prior selling trend, adding approximately 70 million tokens to their holdings. In total, these two key cohorts accumulated roughly 130 million XRP, equivalent to about $265 million.
Trading volume remained 12% above the weekly average, further indicating institutional activity. Technically, however, XRP faces resistance, currently trading below its 50-day and 200-day moving averages at $2.22 and $2.45, respectively.
Wrapped XRP Bridges to DeFi Ecosystems
Hex Trust has launched wXRP, a 1:1 backed representation of XRP designed for decentralized finance (DeFi) applications. The token is tradable on Ethereum, Solana, Optimism, and HyperEVM networks, launching with over $100 million in deposited value.
This development allows institutional participants to utilize XRP across various DeFi protocols—for swaps, liquidity provision, or as collateral—without relying on unregulated third-party bridging services.
Potential Risks and Key Technical Levels
Several factors could temper the current positive momentum. An interest rate hike by the Bank of Japan on December 19, coupled with signals for further moves in 2026, could unwind Yen carry trades and spark market volatility. Additionally, adverse MSCI decisions regarding crypto treasury companies or Senate resistance to the market structure bill may dampen sentiment. A reversal in the ETF inflow trend would also be viewed negatively.
From a technical perspective, the $2.00 level remains critical support. A sustained breakout above $2.06 could pave the way for a move toward $2.20 and potentially $2.35. Conversely, a break below $1.985 might trigger selling pressure toward the mid-$1.90 range.
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