Solana Soars on Fed Stablecoin Proposals
Solana's price has surged above $119 after reaching an intraday high of $122.18, its strongest level in months.
The move follows a proposal from the US Federal Reserve to regulate stablecoin issuers, which could influence the functioning of digital dollars on blockchains like Solana.
Under the proposed rules, any stablecoin under Fed supervision would need to be 100% backed by approved assets, such as short-term US Treasury bills, and issuers would require sufficient capital capacity to absorb losses.
The regulations also extend to risk management, custody, and client money return policies, with eligible banks and firms able to apply for permission to issue stablecoins.
Solana's price has been boosted by the increased trading activity following the announcement, but faces a hurdle at around $124. A convincing move beyond this level could allow for further gains, while a pullback below $116 could bring prices towards the $108-$110 region.