Stellar (XLM) Drops 8.602% Amid Bullish Pattern, Regulatory Optimism

Stellar's latest price was $0.4614, down 8.602% in the last 24 hours. Stellar (XLM) has been consolidating in a bullish pennant pattern on the 2-hour chart, maintaining a position above a key support level. This pattern has developed following a sharp rally earlier in July, and market participants are eagerly awaiting a decisive move. The price action remains compressed as the pattern moves toward the apex, with the asset ranging between immediate resistance and support. The narrow 24-hour range indicates low volatility despite higher trading activity. Positively, the asset has seen some buyer interest, as it remains above the support level. The price structure is intact despite near-term pullbacks, and the symmetrical formation has yet to break.

Scopuly, a popular Stellar wallet platform, has expressed optimism about the future of XLM, citing upcoming crypto-friendly laws in the United States that could reshape the industry. Unlike many other tokens, Stellar has always focused on real use cases, particularly in regulated cross-border payments. It is already ISO 20022-compliant, which means it is ready to connect with banks, central banks, and payment systems around the world. These technical details may soon become major talking points if the legal changes go through.

According to Scopuly, several major crypto laws are coming together. The GENIUS Act, expected to be signed by President Trump, would be the first federal-level stablecoin framework. It requires 1:1 reserves, full transparency, and clear regulatory guidelines. That means stablecoins like USDC would have legal backing, and Stellar already supports USDC on its network. Then there’s the CLARITY Act, which draws the line between commodities and securities in crypto. That’s important because it finally answers the long-standing question about how different tokens should be classified. With that confusion gone, platforms like Stellar can finally operate with confidence. Another bill, the Anti-CBDC Act, pushes back against the idea of a government-controlled digital dollar. That could give more room for private blockchain networks to grow, and Stellar fits that model. And maybe the biggest shift of all: crypto could be added to 401(k) retirement accounts. This opens the door to trillions of dollars in institutional money. If institutions are looking for compliant, global-ready networks, Stellar may become a top choice.

Scopuly pointed to something many investors overlook: ISO 20022 compliance. This global financial messaging standard is now being adopted by banks and financial systems everywhere. It allows fast, secure, and transparent cross-border payments — exactly what Stellar was built for. Other blockchains are still trying to meet these standards. Stellar is already there. That gives it a head start as the financial world shifts to this new format. And because Stellar already supports assets like USDC and EURC on its rails, it’s ready to play a big role in the new payment ecosystem. Scopuly’s statement is bold, but it’s not without reason. The team says everything is now falling into place. Legal clarity is coming. Global financial systems are moving toward ISO 20022. Institutions are finally warming up to crypto. And Stellar is one of the few projects positioned to benefit from all of it. This could be a major turning point for Stellar. Years of development may finally start to pay off. With strong compliance, global reach, and stablecoin support already in place, Stellar may be one of the few tokens that truly benefits from regulatory progress.

In a recent video shared on his X community profile, renowned crypto influencer and market analyst Austin Hilton delivered an urgent message to Stellar (XLM) holders. He underscored the importance of recognizing XLM’s unique position as an ISO 20022-compliant cryptocurrency, highlighting its potential to benefit massively from the coming wave of institutional blockchain adoption. According to Hilton, XLM’s ISO compliance places it in a prime position for integration with global financial institutions. ISO 20022 is the international standard for electronic data exchange between financial entities, and assets like XLM and XRP that meet these standards are likely to be prioritized by banks and governments looking to adopt blockchain technology. Hilton pointed out that legislation such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Clarity for Payment Stablecoins Act are laying the regulatory foundation for mass adoption. While acknowledging the complexities of the legislative process, he emphasized that the direction is clear: the groundwork is being set for blockchain-based systems to integrate with traditional finance, and ISO-compliant cryptos like XLM are at the center of this transformation.

Hilton emphasized that owning XLM now means being early to a major shift. He explained that XLM isn’t just another crypto, it’s a foundational piece of a future financial system. As more institutions seek blockchain solutions that check all regulatory boxes, XLM’s compliance status gives it a strong advantage. He also noted the rising importance of tokenized real-world assets (RWAs), another fast-growing sector in which ISO-compliant blockchains could play a critical role. In his view, assets like XLM, XRP, Algorand (ALGO), Hedera (HBAR), and XDC form a strong foundation for a diversified crypto portfolio focused on long-term institutional relevance. Hilton referenced a recent buy alert from his team’s proprietary X1 Algo trading tool, which signaled a bullish entry on XLM 14 days ago. Since then, XLM has rallied over 110%, confirming the indicator’s accuracy and underscoring the momentum building around the asset. The Stellar network continues to gain relevance through real-world partnerships, such as with MoneyGram and Circle, enhancing its role in cross-border payments and decentralized finance (DeFi). In conclusion, Austin Hilton’s message is clear: XLM is not just a speculative asset, it’s a strategic investment in the future of regulated blockchain finance. As institutions and governments move toward blockchain integration, ISO-compliant cryptos like XLM are likely to lead the way. For holders and potential investors alike, staying informed and understanding the bigger picture could make all the difference in the coming market cycle.

The recent passage of the GENIUS Act by the US House of Representatives is viewed as a significant development for the Stellar ecosystem. This legislation establishes the first comprehensive regulatory framework for stablecoins used within the United States. Key provisions mandate that USD stablecoins must be fully backed by US dollars and short-term US government bonds, undergo regular audits, and require issuers to file frequent disclosures. Industry analysts anticipate these regulations will foster greater consumer confidence as stablecoin adoption gains broader acceptance across the US and potentially other markets.

Observers note the GENIUS Act could positively impact Stellar, given its significant role in facilitating global payments primarily using the USDC stablecoin. Data indicates growth within Stellar's stablecoin ecosystem even prior to this legislation, with the supply of stablecoins on the network increasing by 18% over the previous 30 days, reaching $181 million. The number of active addresses interacting with stablecoins on Stellar also grew significantly during this period, reaching 258,000. Furthermore, Stellar processed over $1.6 billion in stablecoin volume recently, underscoring its utility in cross-border transactions.

Beyond regulatory developments, advancements within the Stellar protocol itself contribute to its outlook. The deployment of Protocol 20 represents a major technical upgrade, introducing features like Soroban smart contracts. This enhancement enables significantly more complex applications to be built on the Stellar network, potentially expanding its use cases beyond core payments into decentralized finance and other domains. Alongside technical progress, the integration of PayPal's PYUSD stablecoin onto the Stellar blockchain earlier this year marked a notable development, increasing the range of stable assets available for users within the ecosystem.