XRP price increased 7% to $2.14 after the Federal Reserve announced the removal of some regulatory concerns and statements about a ceasefire in the Middle Eastern conflict.
Changes in Federal Reserve Regulatory Policy
On June 23, the Federal Reserve announced the removal of 'reputational risk' from its bank examination procedures. This change means that banks will no longer be evaluated based on potential image concerns when partnering with digital asset companies. The move has been interpreted as favorable to the crypto industry, easing traditional banks' interactions with projects such as Ripple.
Ceasefire between Israel and Iran
Another contributing factor to the market surge was U.S. President Donald Trump's announcement of a full ceasefire between Israel and Iran. Both nations agreed to a two-phase truce, which quickly alleviated market panic caused by recent military actions.
XRP in a New Market Reality
The combination of regulatory changes and the ceasefire has paved the way for improved conditions for cryptocurrency integration into the banking sector. XRP, being a crucial element of transaction systems, could become more significant in institutional financial practices, signaling a shift towards more open relationships between traditional finance and cryptocurrencies.
The sudden rise in XRP's price reflects a combination of improving regulatory conditions and stabilizing geopolitical tensions. The elimination of reputational risk has opened new doors for banking partnerships, while the ceasefire announcement has restored investor confidence.
