- SBI CEO links crypto weakness to major U.S. technology IPOs.
- Ripple expands Washington efforts while supporting the proposed CLARITY Act.
- Massive liquidations hit traders as Kitao defends crypto fundamentals.
SBI Holdings CEO Yoshitaka Kitao has identified Ripple’s regulatory efforts in Washington and the proposed CLARITY Act as major developments that could strengthen XRP’s long-term outlook despite ongoing market turbulence. According to Kitao, investors should focus on the industry’s regulatory progress rather than the recent wave of liquidations that shook cryptocurrency markets. He argued that current market weakness stems from institutional capital rotation and not from deteriorating fundamentals within the digital asset sector.
The SBI chief pointed to several high-profile U.S. technology IPOs as the primary reason behind the recent outflow of capital from cryptocurrencies. He explained that major investment firms are temporarily shifting funds into cash to secure allocations in anticipated listings involving SpaceX, Anthropic, and OpenAI.
SpaceX has attracted particular attention from institutional investors. Reports indicate that the company seeks to raise $75 billion at a valuation of approximately $1.75 trillion. Despite posting a net loss of $4.94 billion in 2025, investor demand for the offering remains strong.
Consequently, several funds have reduced exposure to cryptocurrencies while preparing for these opportunities. That movement of capital coincided with significant volatility across digital asset markets and triggered widespread liquidations among leveraged traders. Data from CoinGlass showed that 267,467 traders were liquidated over 24 hours. Total liquidations reached $1.77 billion, while long positions accounted for approximately $1.55 billion of the losses.
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Kitao Dismisses Concerns Over Crypto Fundamentals
Despite the scale of the market decline, Kitao maintained that the industry’s underlying structure remains healthy. According to him, the liquidation event reflected a temporary fiat liquidity squeeze rather than weaknesses in blockchain technology or digital asset adoption.
He emphasized that institutional investors have not abandoned cryptocurrencies. Instead, many firms are reallocating capital toward major public offerings before potentially returning to digital assets once those transactions conclude.
Meanwhile, regulatory developments continue to reshape expectations across the industry. U.S. regulators are working toward a clearer framework for digital assets, tokenized real-world assets, and staking activities.
Ripple Intensifies Push for Regulatory Clarity
Ripple has expanded its policy presence in Washington under Chief Legal Officer Stuart Alderoty. The company continues to support the CLARITY Act, legislation designed to establish comprehensive federal rules for digital assets and reduce regulatory uncertainty.
Kitao described the proposed bill as one of the most important developments for XRP. He believes regulatory clarity would encourage broader institutional participation while creating a more predictable operating environment for blockchain companies.
The SBI executive also suggested that progress on the legislation could serve as a meaningful catalyst for XRP as the market enters its next phase of development. Kitao expects liquidity to return to digital assets once the current IPO cycle passes. He also views the Senate’s consideration of the CLARITY Act as a potentially important event for XRP and the broader cryptocurrency market.
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