Crypto longs lose $500 million as bitcoin slides to $78,000, SOL and XRP down 5%
Crypto longs face $500 million losses as Bitcoin slides to $78,000
CoinDesk1 min read
How CLARITY Act Clears Ripple-Linked XRP for Run to $2
TL;DR
The U.S. Senate Banking Committee approved the CLARITY Act, removing key regulatory barriers for XRP and legalizing the RLUSD stablecoin. This paves the way for Ripple to expand RLUSD adoption in cross-border payments, potentially driving XRP's price towards $2.
Key points
- U.S. Senate Banking Committee approved the CLARITY Act
- CLARITY Act defines XRP's status and legalizes RLUSD stablecoin
- Ripple can expand RLUSD adoption in cross-border payments
- Investor optimism fueled by Ripple's pilot project with JPMorgan and Mastercard
- XRP price may approach $2
Mentioned in this story
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Political progress in the U.S. this week has removed the main limiting factor for XRP as the U.S. Senate Banking Committee approved the Digital Asset Market Clarity Act (CLARITY Act). With only final approval of the bill by the full Senate left, it will not only define the status of the token itself, but also legalize the RLUSD stablecoin.
The new law will clearly separate the rules for issuing dollar-backed tokens. Yes, passive yield on them will most likely be prohibited, but transactional incentives will remain legal. This creates a legal foundation for Ripple to massively expand RLUSD adoption in cross-border payments, where XRP has traditionally served as a bridge asset.
Previously, the use of RLUSD by major banks was blocked due to high regulatory risks. Against this backdrop, investor optimism is already being fueled by Ripple's pilot project for settlements using tokenized U.S. Treasury bonds, which is being implemented on the XRPL network in partnership with JPMorgan and Mastercard.
These fundamental developments are also leading to a resolution on the price chart of XRP.
XRP eyes the $2 highway
The current consolidation has compressed XRP's price to the limit as the token is now pressing directly against the psychological resistance at $1.5, leaving behind a multi-month defense phase. Technically, the asset is now just a couple of percent away from the key trigger - a breakout above the middle Bollinger Band line on the weekly timeframe.
A confirmed close above this level would eliminate the prolonged sideways structure and open a direct path toward the indicator's upper boundary at $2.03. Current volatility has been squeezed into extremely narrow ranges, which historically precedes strong one-directional moves.
XRP weekly price chart with Bollinger Bands attached, Source: TradingView
Q&A
What is the CLARITY Act and how does it affect XRP?
The CLARITY Act defines the status of XRP and legalizes the RLUSD stablecoin, removing regulatory barriers that previously hindered its use by banks.
How will the approval of the CLARITY Act impact Ripple's business?
The approval allows Ripple to expand the adoption of RLUSD in cross-border payments, enhancing its operational capabilities and market position.
What are the implications of XRP reaching a $2 price point?
If XRP approaches $2, it may indicate increased investor confidence and market demand, driven by the favorable regulatory environment established by the CLARITY Act.
