XRP’s price witnessed a sharp upswing on Tuesday, triggered by two significant developments: regulatory relief from the Federal Reserve and a ceasefire agreement in the Middle East. The asset surged 7 percent to $2.14, outperforming many altcoins during the day’s recovery.
Investors responded positively to clearer regulatory direction from U.S. financial authorities, as well as calming geopolitical tensions that had rattled global markets over the weekend.
Federal Reserve Drops Reputational Risk from Bank Oversight
On June 23, the Federal Reserve Board announced the removal of “reputational risk” from its bank examination procedures. This change means banks will no longer be evaluated based on potential image concerns when partnering with digital asset companies.
The announcement was widely interpreted as a policy shift favorable to the crypto industry. According to crypto analyst Amonyx, the removal of reputational risk eliminates a long-standing barrier that limited traditional banks from working with blockchain-based firms like Ripple.
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This development has been seen as a benefit to XRP since the latter is a key component of its cross-border banking solutions. Its business plan is anchored on financial institutions incorporating the blockchain-based technology platform in settling payments globally.
Banks will also be required to satisfy operational and financial standards under the new development. Nevertheless, the ambivalent danger of losing their reputation will no longer discourage them from using crypto services. This has given a significant boost to confidence in both investors and Ripple enthusiasts.
Trump Confirms Ceasefire Between Israel and Iran
Adding to the market momentum was an announcement from U.S. President Donald Trump that a complete ceasefire had been reached between Israel and Iran. Trump confirmed on Truth Social that both nations agreed to a two-phase truce, with Iran beginning the initial 12-hour halt, followed by Israel.
This announcement was made after a flurry of military action over the weekend. The war had already witnessed American air strikes on Iranian nuclear installations and the mirror ordered missile launch, which caused panic on the market.
The resolution quickly brought back confidence in the major asset classes, including cryptocurrencies.
Bitcoin reversed the situation and experienced a 5-percent boost to reach a value of $106,000 following its dip to a value of $98,000 when the situation was more heated. Among the most remarkable surges of major altcoins, there was a 7 percent surge in XRP. Ethereum recorded 9 percent.
XRP Positioned to Benefit from Easing Regulatory and Geopolitical Pressures
The timing of the ceasefire and the Fed’s policy change has fueled speculation of an upcoming shift in crypto-banking relations. For XRP, which has long aimed to bridge the gap between traditional finance and blockchain systems, this signals a more open path ahead.
Recognizing XRP’s consensus model and eliminating image-related factors from supervisory criteria marks a major milestone in Ripple’s ongoing push for adoption. With regulated banks feeling freer to experiment with crypto integrations, there is a chance that XRP will become put into wider institutional use.
In the interim, the risk-off market is curbed by the de-escalation in the Middle East. The mood among investors has shifted to positive buoyancy, which has seen investors returning funds to risky assets such as leading digital tokens.
Conclusion
XRP’s sudden price surge reflects the combined effect of improving regulatory conditions and easing global tensions. The Federal Reserve’s decision to drop reputational risk as a supervisory factor has opened new doors for banking partnerships.
Simultaneously, the ceasefire announcement by President Trump has helped stabilize market sentiment. Together, these events have driven XRP’s recent momentum and renewed optimism in the broader crypto sector.
Also Read: Top Crypto Analyst Sends Important Message to XRP Holders With New Price Target
