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Ahmed Barakat
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California’s Digital Financial Assets Act will go into effect on July 1. It requires any business conducting digital asset business with state residents to obtain a DFAL license, have a completed application on file with the DFPI, or cease covered operations. Currently, according to public records, no Ripple entity appears among the applicants. The price of XRP has fallen below the $1.10 level in this moment of uncertainty.
DFAL covers the exchange of digital assets for fiat currencies or other digital assets, their transfer between people, custody, and the issuance of reserve-backed instruments. It draws directly on Ripple’s California-facing operations: payments infrastructure, custodial services, and the issuance and redemption of RLUSD, Ripple’s currency pegged to the dollar. Stable coin.
Ripple’s current portfolio of over 40 money transfer licenses in the US does not automatically satisfy DFAL; The law is a separate system administered by DFPI through its national multi-state licensing system.
However, there are three paths to legal compliance by July 1: obtain a DFAL license, have a completed application pending with the DFPI, or qualify under a narrow legal exemption, available primarily to banks, certain trusts, and entities registered with the SEC or CFTC that operate within an already regulated business.
Ripple has been involved in this process as the company has submitted a formal comment letter to the DFPI, pushing for the elimination of redundant money transfer licensing requirements for DFAL-licensed businesses. However, participation is not the same as an application.
Law firms, including Chambers-rated practices, have described DFAL as one of the most expansive state-level digital asset licensing regimes in the country.
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Can XRP price hold at $1 if Ripple passes DFAL deadline?
XRP is trading near $1.10, which is well below the expected $2.50 that many had expected. Recent price action reflects weak momentum, with sellers repeatedly capping rallies around the $1.15 to $1.20 area. Despite continued interest in Ripple’s regulatory developments, the market has yet to price in a decisive positive outcome.
Meanwhile, investors remain focused on several legal and regulatory milestones involving Ripple. The court’s previous finding that XRP itself is not inherently a security has removed significant uncertainty. However, the remaining sanctions and injunction issues are still important as they could impact Ripple’s future business operations and market sentiment.
From a technical perspective, XRP must first reclaim the $1.15 to $1.20 area before traders can discuss a stronger trend reversal. If buyers regain control and regulatory developments remain favorable, the next resistance area could emerge around $1.30 to $1.50. A sustained move above these levels will likely require a meaningful catalyst.
On the downside, support remains centered around $1.05 and $1.00. If regulatory expectations weaken or broader cryptocurrency markets decline, these levels could come under pressure. The $1.00 mark remains an important psychological threshold, as a decisive breakout could trigger additional selling.
Right now, the market seems to be waiting for confirmation rather than trading on assumptions. Regulatory progress could improve sentiment, but XRP’s long-term path will likely depend on legal clarity and stronger demand returning to the market.
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