HomeNewsXRP Sees Minor Decline Amidst Excitement Over US Stablecoin Bill

XRP Sees Minor Decline Amidst Excitement Over US Stablecoin Bill

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  • Senators Cynthia Lummis and Kirsten Gillibrand introduced the Payment Stablecoin Act to safeguard consumers, foster innovation, and fight digital currency financial crimes.
  • The Payment Stablecoin Act’s introduction has had an influence on Ripple since it provides a legislative framework to support its planned stablecoin launch in the face of investor anxiety and regulatory developments in the XRP market.

The Payment Stablecoin Act is a novel piece of legislation that U.S. Senators Cynthia Lummis and Kirsten Gillibrand introduced on Wednesday with the goal of creating a strong legal framework for stablecoins.

In the rapidly developing world of digital currencies, this program is regarded as a critical step in safeguarding customers, promoting innovation, and thwarting financial crimes.

Consequences for Regulation and Consumer Protection

The goal of the new law is to improve consumer confidence and stability in digital transactions by requiring stablecoin issuers to hold one-to-one reserves. In addition, the act expressly forbids the creation of algorithmic, unbacked stablecoins, resolving worries of their dependability and volatility.

The act integrates digital currencies while maintaining the traditional dual banking system by establishing extensive regulatory frameworks that comply with both federal and state regulations.

The senators underlined how important it is to pass the Payment Stablecoin Act in order to maintain the US dollar’s position as the main digital exchange currency.

The law seeks to advance American values and economic interests in the $4.5 trillion global digital economy by establishing standards for U.S.-issued stablecoins and thwarting foreign efforts to establish alternative settlement systems.

Impact on Ripple and the Crypto Industry

Stuart Alderoty, Chief Legal Officer at Ripple, praised the senators’ efforts to alter crypto policy in response to the legislative drive. Ripple, which has previously declared intentions to introduce its own stablecoin, will profit from the act’s regulatory clarity.

The Ripple stablecoin’s credibility as a trustworthy digital currency will be increased by the fact that it will be fully backed by government assets and US dollar deposits.

The market value of Ripple’s XRP has significantly decreased despite the legislative developments. As of this writing, XRP’s price on CoinMarketCap was $0.4904, indicating a sharp decline of 20.69% over the previous week and 1.61% over the previous day.

Wider market patterns and investor apprehensions, particularly in light of regulatory developments, are reflected in this slump.

Prospects for the Global Impact Act

On the other hand, a research by the World Bank that categorized XRP as a stablecoin that might make cross-border payments easier was recently featured by ETHNews.

This designation may strengthen XRP’s position in global banking and support the Payment Stablecoin Act’s objectives of promoting secure and effective digital transactions across borders.

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Syofri is an active forex and crypto trader who has been diligently writing the latest news related to the digital asset sector for the past six years. He enjoys maintaining a balance between investing, playing music, and observing how the world evolves. Business Email: info@ethnews.com Phone: +49 160 92211628