The new development led to a decline of 0.40% on Wednesday, and the session was closed at $0.4953. The United States Stablecoin Legislation garnered significant investor attention from all over the globe. The losing streak of XRP lost its extension to three sessions, and American senators Cynthia Lummis and Kirsten Gillibrand came up with an act regarding payment stablecoins.
Protecting the consumer community, powering innovation, targeting money laundering, and targeting illegal financing are the objectives of the legislation put forward by Cynthia Lummis and Kirsten Gillibrand. A press release was issued by Senator Kirsten Gillibrand, and he highlighted the key components of the legislation in that press release.
The act will protect the consumer base from banning algorithmic stablecoins and will be very helpful in preventing the illegal usage of stablecoins. The creation of national regimes for stablecoin issuers that conserve the dual banking system is vital to the new legislation. The legislation was chalked out with the interests of the United States of America, and U.S. dollars were kept in mind. It is expected that the recent legislation will support the dollar as the digital exchange medium.
The makers of the new legislation believe that it will enshrine pristine values upheld by America. The new act will establish the U.S. dollar as the base currency for the world’s largest digital economy, amounting to $4.5 trillion. A top official at Ripple has responded that it is great to see that the American Senate engages with cryptocurrency regulation in a positive way.
The bill is presented at a crucial time when the Securities and Exchange Commission takes legal action against cryptocurrency establishments. Ripple has revealed plans to launch its stablecoin in recent months, and a 1:1 peg with the American dollar is the smart feature of Stablecoin.
Stablecoin is supported by American dollar deposits, government treasuries, and similar cash equivalents. The progress of the new legislation will act as a catalyst for the introduction of Ripple Stablecoin. Both senators, Cynthia Lummis and Kirsten Gillibrand, are familiar with the ins and outs of the digital asset landscape.
These legislators introduced an act concerning financial innovation that will give the CFTC an upper hand in supervising the digital asset economy. The legislation raises questions about the supremacy of the Security and Exchange Commission in dealing with digital assets.
Media reports indicate that addressing problems related to XRP sales to corporate investors might provoke the Securities and Exchange Commission. The Securities and Exchange Commission had earlier plans to appeal against the ruling by filing a motion in court.
Surely, the ongoing debate will impact XRP, and the current projection of XRP signals a bearish price. XRP has been hovering below the 50-day and 200-day Exponential Moving Average. The top trend of XRP is almost synonymous with the support level, and Ripple’s launch of Stablecoin in the U.S. Dollar will take on a $150 billion market. Ripple has plans to offer stablecoins in non-American markets like Europe and Asia. Ripple, a leading crypto startup, is a major player in the multibillion-dollar stablecoin market.