“We are out to harmonize the rules between the SEC and the CFTC, giving clarity and certainty to the innovators and to investors… so that people can develop their products in the United States rather than feel they have to go offshore.”
Recent developments and US regulators’ support for the digital asset space underscored the marked shift in the US stance toward crypto, suggesting increased adoption.
However, stablecoin yields remain the focal point. US banks are pushing for legislation to prevent stablecoin yields, citing concerns over deposit migration to DeFi impacting bank lending and the US economy.
Crucially, representatives from banks will reportedly attend the next White House meeting on stablecoin yields. Crypto in America host and journalist Eleanor Terret stated:
“The next iteration of the White House stablecoin yield discussions between crypto and the banks has been scheduled for Tuesday, a source within the banking industry tells me. The confab will again be staff-level, but this time representatives from the banks themselves will be present, alongside industry trade groups.”
Progress toward an agreement on stablecoin yields would boost XRP demand, given the token’s sensitivity to legislative developments.
While crypto-related legislation remains crucial for XRP’s price outlook, strong demand for spot ETFs also supports the positive medium-term outlook.
The US XRP-spot ETF market saw $23.88 million in net inflows for the reporting week ending February 6, ending a two-week outflow streak. Notably, institutional demand contrasted sharply with the spot market. Despite weekly inflows, XRP faces heavy losses in the week. Notably, the XRP-spot ETF market outperformed the US BTC-spot ETF market, which extended its outflow streak to three weeks.
Spot-ETF flows remain key to price trends. The US XRP-spot ETF market has seen total net inflows of $1.22 billion since trading began in November. Meanwhile, the US BTC-spot ETF market has had $4.7 billion in net outflows over the same period, weighing on BTC and the broader crypto market. (Pending data for Fidelity Wise Origin Bitcoin Fund (FBTC)).
A continued divergence in demand for XRP-spot and BTC-spot ETFs could decouple XRP from BTC, paving the way for new highs.
