XRP officially goes live on CME, as the derivatives platform adds benchmarks tracking the asset following the initial announcement weeks ago.

Recall that The Crypto Basic confirmed on July 11 that the Chicago Mercantile Exchange (CME), one of the world’s largest derivatives platforms, had announced its intentions to list XRP benchmarks. The aim was to provide traders with transparent pricing data.

CME Officially Lists XRP Benchmarks

In the most recent development, CME has now added XRP benchmarks to its platform, per the earlier announcement. Notably, a quick look at the official CME platform confirms the listing of two XRP benchmarks: the Real-time Index for the XRP/USD pair (XRPUSD_RTI) and the Reference Rate for the XRP/USD pair (XRPUSD_RR).

The Reference Rate (XRPUSD_RR) is a daily measure of the U.S. dollar value of XRP. CME calculates it once per day using trading data from select crypto exchanges. However, the Real-time Index (XRPUSD_RTI) provides a continuous and up-to-the-minute price of XRP against the U.S. dollar, updated constantly.

CME calculates the rates using a methodology that typically involves taking an average of the trading prices of XRP on select cryptocurrency exchanges including Bitstamp and Coinbase over a specific time period. This helps to reduce the impact of short-term price volatility and outliers.

Notably, the rate can pass as a reference in financial contracts, derivatives, and other financial instruments related to XRP. CME typically provides these rates in collaboration with Crypto Facilities (CF), a UK-based cryptocurrency trading platform. 

XRP Under the Payment Sub-Category

Interestingly, having listed XRP, CME places the cryptocurrency under the “Payment and Store of Value” sub-category. This move has caught the attention of XRP community members, who have persistently argued that XRP is a payment utility token. 

Notably, the latest development comes one year after Judge Analisa Torres declared XRP a non-security in the SEC vs. Ripple lawsuit. Before now, XRP had witnessed intense legal pressure, being under scrutiny as a security or not. This resulted in multiple platforms either delisting it or failing to recognize it to avoid legal issues with the SEC. 

One of the major drivers of cryptocurrency adoption is visibility. Notably, part of this visibility involves an easy-to-access public sphere providing real-time rates for the cryptocurrency in question. 

CME provides such publicity through its benchmarks. However, it was not until recently that the platform expressed interest in including XRP despite the token being around for over a decade.

Despite the massive decline witnessed across the broader crypto market, XRP has continued to hold the line and has remained at the $0.6 price territory. 

The seventh-biggest crypto by market cap is currently down 1.34% in the past 24 hours. Conversely, other top crypto assets have recorded massive declines within this timeframe. For instance, Bitcoin (BTC), Solana (SOL), Binance Coin (BNB), and Dogecoin (DOGE) are down 3.78%, 5.04%, 3.29%, and 3.51%, respectively. 

Notably, there are speculations that the upcoming SEC closed-door meeting contributed positively to XRP’s recent performance. 

SEC Schedules New Closed-Door Meeting 

For context, the U.S. SEC has scheduled another closed-door Sunshine Act meeting for August 1, 2024, at 2 PM (ET). 

As usual, the meeting will be held at the commission’s headquarters in Washington, DC. However, top officials who cannot physically attend can do so remotely. 

According to the SEC, the meeting will focus on four topics, including the settlement of injunctive actions and administrative proceedings. Additionally, the securities regulator will also deliberate on resolving litigation claims and other enforcement proceedings. 

New Rumor About SEC v. Ripple Case Settlement Resurfaces 

Expectedly, the upcoming SEC closed-door meeting has triggered speculations of a potential settlement of the Ripple lawsuit. Several XRP community members speculated that the securities agency might comment about settling its legal dispute with Ripple, potentially bringing the lawsuit to an abrupt end. 

This is not the first time that the community has made this speculation. The mere mention of an SEC closed-door meeting usually fuels rumors of an imminent settlement in the Ripple lawsuit. 

Nonetheless, these meetings have ended in futility, with no agreement on a settlement reached. For instance, the community hoped a Ripple settlement would happen during the SEC’s closed-door meeting on July 25. However, things did not go as expected, leading to the collapse of XRP’s price. 

There is no guarantee that the SEC would agree to settle with Ripple during its upcoming closed-door meeting. The crypto payments company has continuously expressed its willingness to settle with the SEC on the condition that XRP is declared a non-security. Such a declaration would foster widespread institutional adoption of the token, especially in the United States. 

Despite Ripple’s commitment, the commission is unwilling to settle the case. Instead, it has relentlessly pursued its legal action against Ripple for over three years. Moreover, the SEC has already signaled its intention to appeal the court’s summary judgment, which earned it a partial defeat. 

In the meantime, XRP is holding the line around the $0.6 price level as the parties await the court’s final judgment, which is expected later this year.