The CLARITY Act could lead to significant changes in the regulation of digital assets in the U.S., including XRP's status.
Provisions of the CLARITY Act
The bill under discussion in the U.S. Congress aims to define when a digital asset is classified as a commodity. This legislation seeks to limit the SEC's involvement in digital assets and assign primary oversight to the CFTC.
Implications for Ripple and XRP
Ripple has advocated for regulatory clarity since 2013. The new bill would solidify XRP's legal status at the federal level, impacting the company's business model and products like RippleNet and RLUSD, potentially leading to broader institutional adoption.
Market Response and Outlook
Recent data indicate that XRP volatility has increased by 100%. The upcoming vote in Congress is seen as a historic moment for the U.S. digital asset market. The passage of the bill would remove legal uncertainties and open avenues for financial products linked to XRP.
The CLARITY Act represents a potential turning point for the regulation of digital assets in the U.S. and XRP's role as a bridge asset in the evolving financial system.
