Advancement of FIT21 Crypto Regulation Bill: Impact on XRP Price – Beneficial or Detrimental?
The US Congress is currently considering a bill that aims to regulate cryptocurrencies. Simultaneously, a major holder of XRP, known as a whale, has attracted attention by transferring a significant amount of XRP to centralized exchanges. Despite positive regulatory developments, the price of XRP has slightly decreased, indicating lingering uncertainty in the market.
The US House of Representatives is taking significant steps with the Financial Innovation and Technology for the 21st Century Act (FIT21). This bill aims to bring clarity to regulations surrounding digital assets. It clarifies which agency, whether the SEC or CFTC, has jurisdiction over digital assets and ensures consumer and investor protection by defining them as commodities or securities.
Interestingly, the FIT21 bill has not received much attention regarding its actual content. There are over 150 mentions of decentralization and a description of the decentralization test, as well as discussions about consensus mechanics. These aspects are not being widely discussed or reported.
Legal experts, including pro-XRP advocate Bill Morgan, have highlighted an important aspect of the bill influenced by Judge Torres. It states that digital assets sold within an investment contract are not automatically considered securities. This has significant implications for ongoing legal battles, such as the Ripple vs. SEC case, and has the potential to reshape crypto regulations.
In a dramatic move, an XRP whale transferred 50.78 million XRP tokens to centralized exchanges Bitstamp and Bitso. These transactions, tracked by Whale Alert, involved 29.14 million XRP sent to Bitstamp and 21.64 million XRP sent to Bitso, all from one wallet address. The timing of these transfers, occurring amidst positive news for Ripple and their collaboration with these exchanges, has added a sense of mystery and speculation within the crypto community.
Despite the positive regulatory news, the price of XRP has been volatile. It is currently trading at $0.528, experiencing a slight 1% dip in the past 24 hours. The 24-hour trading volume has significantly decreased by 34.07% to $1.13 billion, indicating a bearish sentiment. However, XRP’s market cap remains strong at $29.24 billion, highlighting its enduring importance in the crypto world.
The FIT21 Act’s potential impact on Ripple is still uncertain. Share your thoughts on whether it spells good news for Ripple.