“Implied volatility in XRP spikes sharply, pointing to a possible 13% move as lawmakers gear up for Crypto Week debates.”

XRP Climbs as Implied Volatility Soars on Looming U.S. Crypto Legislation

XRP surged more than 5% on Monday, trading around $3 — a level last seen in early February, according to CoinDesk data — as traders brace for potential volatility tied to key developments in U.S. crypto regulation.

Volmex Finance reports that XRP’s seven-day implied volatility (IV) has shot up to an annualized 96%, significantly higher than last week’s 73%, and more than double the seven-day historical volatility of 42%. This spike implies traders expect a possible 13% price swing in either direction over the coming week.

Meanwhile, bitcoin (BTC) markets remain comparatively stable. BTC’s seven-day implied volatility has nudged up only slightly to an annualized 46%, pointing to an expected price fluctuation of roughly 6% over the week.

The heightened volatility in XRP comes as the U.S. House of Representatives prepares to examine three pivotal crypto bills that could reshape the regulatory environment:

GENIUS Act: Proposes that stablecoin issuers maintain liquid reserves, undergo annual independent audits, and publish monthly transparency reports.
CLARITY Act: Aims to define whether crypto assets fall under SEC or CFTC oversight.
Anti-CBDC Surveillance Act: Seeks to block the Federal Reserve from issuing a retail central bank digital currency.

Given that the SEC has designated XRP a strategic U.S. asset, new legislation could play a significant role in shaping its future.

“The GENIUS Act and CLARITY Act are particularly significant for laying down institutional ground rules — clarifying stablecoin issuance standards and regulatory oversight boundaries between the SEC and CFTC,” said Javier Rodriguez-Alarcón, Chief Investment Officer at crypto liquidity firm XBTO. “These efforts are crucial for removing legal uncertainty, a major barrier to institutional involvement.”

Rodriguez-Alarcón added that clear regulations could enable sustained capital flows into crypto markets, similar to developments seen in regions like the UAE, where regulatory clarity has already unlocked opportunities in tokenized finance.

“If passed, these measures could pave the way for broader stablecoin adoption, regulated tokenization, and the creation of legally sound on-chain financial products,” he noted.

While implied volatility measures only the size — not the direction — of potential price moves, XRP’s strong upward momentum signals that traders remain bullish heading into a pivotal week for crypto policy in Washington.