A draft version of the “Clarity Act,” currently circulating ahead of its official release, proposes a significant regulatory shift for major cryptocurrencies such as XRP, Solana, and Dogecoin. The bill aims to classify certain tokens as “non-ancillary” assets, thus exempting them from being treated as securities, which would relieve them from associated Securities and Exchange Commission (SEC) disclosure requirements.
This classification relies on a token’s inclusion in a regulated financial product. According to the draft, a token would be designated as non-ancillary if, as of January 1, 2026, it is the principal asset of an exchange-traded product (ETP) listed and traded on a national securities exchange. If enacted, this provision would apply to several cryptocurrencies currently listed as ETPs, aligning their regulatory status with that of Bitcoin and Ethereum.
Experts suggest that while the immediate price effects may be muted—illustrated by muted gains among altcoins and Bitcoin’s modest increase to around $93,000—the main impact would be on institutional compliance and access. This clarity around regulatory frameworks could ease uncertainty and broaden the set of institutions willing to engage with these assets.
Jordan Jefferson, founder of DogeOS, noted that the proposed regulatory pathway can significantly influence institutional engagement, fostering a more compliant environment for organizations interested in cryptocurrencies. Jamie Elkaleh, CMO of Bitget Wallet, emphasized that the bill represents a broader trend towards regulating crypto based on their distribution and use in financial products.
Legal experts have highlighted that should this draft language make it into the final bill, it could place XRP, SOL, and DOGE within a “compliance comfort zone,” similar to that which has previously enabled institutional interest in Bitcoin and Ethereum. However, the bill’s political fate remains uncertain, heavily influenced by the upcoming mid-term elections.
Notably, the draft reveals various political trade-offs, including a provision protecting software developers, catering to decentralized finance (DeFi) interests, and strategically omitting contentious areas regarding stablecoin yield. With the Senate Banking Committee set to debate the bill soon, the focus will be on whether ETF eligibility can serve as a definitive path to legitimizing cryptocurrencies within a regulatory framework.
