XRP Tumbles Amid Senate Vote Uncertainty and Soaring Treasury Yields
XRP slid 5.3% on Tuesday as the U.S. Senate worked towards a cloture vote on the CLARITY Act, which aims to establish a regulatory framework for stablecoins and digital assets within banking.
The bill requires 60 Senate votes to advance, but uncertainty surrounds whether it can clear that threshold in its current timeline.
XRP has a significant stake in the outcome due to its established role in the banking sector and connection to the stablecoin RLUSD, developed by Ripple. A successful passage of the CLARITY Act could be a positive catalyst for XRP, while failure to advance would remove a near-term tailwind from its outlook.
The 10-year Treasury yield climbed above 5% on Tuesday, reaching its highest level in nearly 20 years, driven by sticky inflation and rising oil prices. Markets are pricing in a 93% chance of a Federal Reserve rate hike this week, delivering a second headwind for speculative assets at the same time as the Senate vote.