Solana rose above the $119 price level after reaching an intraday high of $122.18, placing it near its strongest price level in months.
The move followed a proposal from the US Fed for further regulation of stable currency issuers. The recommendations will not directly regulate the Solana blockchain itself but can influence the functioning of digital dollars, controlled by the authorities via networks like Solana.
Federal Reserve proposes stablecoin safeguards
The Federal Reserve recently requested public comments on two proposals tied to the GENIUS Act.
One of the proposals requires that any stablecoin that comes under the supervision of the Fed should be 100% held against certain approved assets. One possible option for them is to be held up against short-term US treasury bills or some others that could easily be converted into cash.
The issuers would be required to possess the necessary capital capacity to take losses. Rules would extend from risk management to custody to their ability to allow their clients’ money to be returned when requested.
Another proposal would tell eligible banks and firms how they can get permission to issue stablecoins.
This move matters to Solana because stablecoins form part of both the large trading volume and payments that they host. Clear US regulations could attract regulated issuers and users to stablecoins for use on public blockchains.
The latest announcement does not mean that the Fed endorsed Solana or any other blockchain.
Solana faces its next test near $122
At the time of this writing, SOL was trading at around $119.51 after gaining 2.13%. During today’s trade, it reached highs of $122.18 before cooling down.
Buyers seem to remain in control following the price climb from below the $100 price level earlier in September. With the latest move also came increased trading activity, giving the recovery some support.
The immediate hurdle sits between the $122 and $124 price levels. SOL has entered that region, but it has not yet established itself above it.
A convincing move beyond $124 could allow for further gains. If buyers can’t keep up, the $116 price level is the first level to watch. A deeper pullback could bring the price towards the $108–$110 region, where buyers previously stepped in.
Final Summary
- The Federal Reserve has some proposals for stablecoin issuers.
- SOL reached the $122.18 price level, but it must move beyond the $124 level to strengthen its latest breakout.
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