  We present a new scenario of the emissive origin in the Steep Power Law (SPL)
state of X-ray Binaries. The power-law component of X-ray emission is the
synchrotron radiation of relativistic electrons in highly magnetized compact
spots orbiting near the inner stable circular orbit (ISCO) of black hole and
has a hard spectrum that extends to above MeV bands determined by electron
acceleration rate. These photons are then down-scattered by the surrounding
plasma and form an observed steep spectrum. The relevance of this model with
high-frequency quasi-periodic oscillations (HFQPOs) and extremely high
luminosity of the SPL state is discussed.
