XRP 'Twitches' as Warren Blocks... Market 'On Edge' Over Attempt to Block Ripple's Master Accounts

▲ XRP, Cryptocurrency Regulation/AI Generated Image

U.S. Senator Elizabeth Warren has submitted over 40 amendments to the U.S. cryptocurrency market structure bill, pushing to block cryptocurrency firms like Ripple from accessing Federal Reserve master accounts. These amendments, raised ahead of a vote by the Senate Banking Committee, have reignited debate surrounding the issue of banking access for cryptocurrency companies such as Ripple, Anchorage Digital, Circle, and Custodia Bank.

CoinGape reported on the 13th that the U.S. Senate Banking Committee has received over 100 amendments related to the draft U.S. cryptocurrency market structure bill. Senator Warren submitted more than 40 amendments to oppose the body of the bill, one of which aims to prevent the Federal Reserve from issuing master accounts to cryptocurrency companies.

Master accounts serve as a direct channel for companies to access the Federal Reserve's payment system, and it is reported that Ripple, Anchorage Digital, Circle, and Custodia Bank have applied for them. CoinGape also stated that Kraken had previously received a Federal Reserve master account. Senator Warren's amendment is presented as a measure to block cryptocurrency firms' access to the Federal Reserve, even in situations where Ripple has received approval related to banking licenses.

Senator Warren argued that the bill could endanger investors, national security, and the entire financial system. She stated that no member of the committee should support the bill, claiming it fails to prevent massive conflicts of interest surrounding the cryptocurrency businesses of former U.S. President Donald Trump and his family.

The cryptocurrency industry has pushed back, arguing that Senator Warren's amendments are designed to protect the banking sector from competition. CoinGape reported that Senator Warren is leading a backlash from the banking sector, targeting a compromise on stablecoin yields. These amendments have emerged as a variable highlighting the conflict between cryptocurrency innovation and the protection of the existing banking sector, ahead of the Senate Banking Committee's review.

Senator Warren's amendments were not the only ones to cause controversy. Senator Jack Reed and Senator Tina Smith also submitted separate amendments. These amendments include provisions to limit stablecoin yields and prohibit the use of cryptocurrencies like Bitcoin (BTC) and XRP for legal tender purposes, such as tax payments.

CoinGape reported that the U.S. cryptocurrency market structure bill aims to provide regulatory clarity for crypto assets, stablecoins, and market structure, and to keep financial innovation within the United States. However, the continuous submission of amendments indicates that further negotiations may be inevitable during the Senate Banking Committee's review process.

Amidst the related news, XRP fell to $1.42 before recovering to the $1.45 level. CoinGape reported that XRP declined due to the U.S. Consumer Price Index (CPI) rising to 3.8% but later recovered, with 24-hour trading volume further decreasing by 6%.

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