XRP Rallies 5% as Volatility Surges Amid Key Crypto Debates in Washington
XRP rose over 5% on Monday to trade near $3, its highest level since early February, driven by strong buying momentum as traders brace for significant price swings tied to crypto legislation under review in the U.S.
Volmex Finance reports that XRP’s seven-day implied volatility (IV) has surged to an annualized 96%, up from 73% last week. This spike signals traders are preparing for XRP to move as much as 13% in either direction over the coming week — far exceeding the seven-day historical volatility of 42%.
In contrast, bitcoin (BTC) remains relatively calm, with its seven-day implied volatility inching up only slightly to 46%, suggesting a more modest expected price swing of about 6%.
The heightened volatility around XRP comes as Congress gears up to examine three major crypto bills this week:
- GENIUS Act: Would force stablecoin issuers to hold liquid reserves, undergo annual audits, and publish monthly reports.
- CLARITY Act: Aims to define whether crypto assets fall under the SEC or CFTC’s regulatory oversight.
- Anti-CBDC Surveillance Act: Seeks to ban the Federal Reserve from launching a retail central bank digital currency.
Given that the SEC has labeled XRP a strategic U.S. asset, any regulatory clarity could have significant implications for its price and market positioning.
“The GENIUS Act and CLARITY Act are crucial for eliminating the legal gray zones that deter institutional investors,” said Javier Rodriguez-Alarcón, Chief Investment Officer at crypto liquidity firm XBTO. “Clear rules will help the U.S. match progress in places like the UAE, where defined frameworks are already unlocking new tokenized markets.”
Rodriguez-Alarcón added that these bills, if passed, could open doors to broader stablecoin adoption, regulated tokenization, and new on-chain financial products backed by legal certainty.
It’s important to note that implied volatility is direction-neutral, meaning the predicted 13% swing for XRP could be upward or downward. Still, with XRP already climbing strongly, traders are watching closely as Capitol Hill debates what could be game-changing legislation for the digital asset industry.
