US Fed policy change increases Ripple's appeal

The US Federal Reserve (Fed) has officially removed the concept of “reputational risk” from its banking supervision regulations. The move is critical for the crypto industry, as it reinforces opportunities for collaboration between US banks and companies in the digital sector, and Ripple in particular.

Prior to this, banks could deny service to cryptocurrency organizations due to negative public perception, labeled as “reputational risk.” This limited many blockchain companies' access to traditional banking infrastructure. Now, according to regulatory rules, creditors will be required to assess the real financial risk.

As journalists at CoinMarketCap note, this should particularly benefit Ripple, which is known for its strict compliance standards and institutional focus. The company is already cooperating with central banks, financial institutions, and payment service providers around the world.

After news of the Fed's decision was made public, the XRP token rose 0.5% within an hour, reflecting positive market reaction. Over the past year, the XRP price dynamics have outperformed those of bitcoin and Ethereum.