XRP Volatility Spikes Ahead of Key Crypto Legislation on Capitol Hill

XRP’s price is expected to experience significant swings this week as market volatility surges ahead of critical crypto legislation in the U.S. The seven-day implied volatility (IV) index for XRP rose to an annualized 96%, up from 73% last week, according to Volmex Finance. This sharp rise indicates the market is pricing in a potential 13% move in either direction over the next seven days.

In contrast, Bitcoin's (BTC) seven-day IV remains relatively stable at 46%, signaling a smaller expected price fluctuation of about 6%.

The heightened volatility around XRP coincides with Crypto Week on Capitol Hill, where lawmakers are set to review three major bills that could reshape the U.S. crypto landscape. These include the GENIUS Act, which mandates stablecoin issuers to maintain liquid reserves and conduct regular audits; the CLARITY Act, aimed at defining regulatory jurisdiction between the SEC and CFTC; and the Anti-CBDC Surveillance Act, which seeks to prevent the issuance of a retail central bank digital currency.

XRP, often discussed as a strategic digital asset in the U.S., could benefit significantly from the legal clarity these bills aim to provide. Javier Rodriguez-Alarcón, CIO at crypto liquidity firm XBTO, emphasized that regulatory clarity could unlock institutional capital and align the U.S. with regions like the UAE, where regulatory frameworks have already enabled tokenized financial markets.

Despite the volatility being neutral in direction, XRP is showing bullish momentum, currently trading over 5% higher at $3—levels not seen since February. The outcome of this week’s legislative discussions could prove pivotal for XRP and the broader digital asset market.