XRP faces downward pressure as the CLARITY Act faces a critical Senate vote and 10-year Treasury yields hit 20-year highs, dampening appetite for speculative digital assets.
XRP dropped ~5.3% as a key Senate vote on the CLARITY Act remains uncertain and rising 10-year Treasury yields above 5% pressure speculative assets.
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XRP dropped 5.3% on Tuesday as investors reacted to uncertainty surrounding the CLARITY Act and a broader market retreat. Rising 10-year Treasury yields, which have climbed above 5%, continue to pressure speculative assets as markets price in a 93% probability of a Federal Reserve rate hike.
The CLARITY Act aims to establish a regulatory framework for stablecoins and digital assets in banking, which directly impacts XRP's utility and its relation to the RLUSD stablecoin.