Ethereum (ETH 1.77%) is up 10.1% in the last 24 hours as of 3:34 p.m. ET on Tuesday. The jump comes as the S&P 500 notched up 0.4% and the Nasdaq Composite gained 0.7%.
Ethereum reversed yesterday's decline after Federal Reserve Vice Chair Michelle Bowman told legislators that the Fed will work to create a framework for stablecoins within the banking system.
CRYPTO: ETH
Key Data Points
New stablecoin rules are coming
On Monday, Bowman addressed the House Financial Services Committee, telling committee members that she would work with fellow regulators to "encourage innovation in a responsible manner," and that stablecoins could help create a more efficient banking system, but that it was her responsibility to ensure their use doesn't disrupt the "safety and soundness" of the financial system.
The banking industry's adoption of stablecoins could massively accelerate their use across the economy, which in turn would put upward pressure on Ethereum's value.
Image source: Getty Images.
Ethereum also received a boost from Vanguard, the world's second-largest asset manager. The company announced that investors can now trade Ethereum, Bitcoin, and other cryptocurrency ETFs on its brokerage platform.
It's a bumpy road ahead
While stablecoins could find a substantial footing within banking, I think the current decline in crypto prices will continue for some time and could get much worse before it gets better. But for more risk-tolerant investors with a long investment horizon, Ethereum is a solid pick.
