The CLARITY Act, which aims to establish a clear regulatory framework for digital assets, has made unprecedented strides in U.S. legislative history, becoming the first crypto market structure bill to progress this far. The House of Representatives voted in favor of the bill on July 17, 2025, with a significant margin of 294-134. As of now, nearly a year later, the Act is poised for a crucial vote in the Senate.
For holders of XRP, this legislative journey carries substantial implications, primarily due to the token’s classification and regulatory oversight. After passing the House, the bill encountered delays in the Senate, but on May 14, 2026, it made headway when the Senate Banking Committee endorsed it in a bipartisan vote, with two Democratic senators, including Angela Alsobrooks, supporting the bill.
The pivotal moment came shortly thereafter, on June 1, 2026, when the updated version of the Senate Banking bill was officially listed on the Senate Legislative Calendar, making it eligible for full consideration by the Senate. However, being placed on the calendar does not equate to passage. Several significant hurdles remain before the bill can reach the President’s desk.
To be enacted into law, the CLARITY Act must be reconciled with the version proposed by the Senate Agriculture Committee, secure a 60-vote majority in the Senate, undergo further reconciliation with the House version, and receive presidential approval. Notably, differences between the Senate bills and the CLARITY Act focus on areas such as digital asset taxonomy, the treatment of decentralized finance (DeFi) and stablecoin yield, as well as various ethics provisions.
The Senate is operating under a tight timeline; any vote must take place before August 2026, as campaigning will soon render the Senate’s calendar inhospitable to controversial votes. The White House has aimed for a July 4 deadline, though officials acknowledge that this target may be ambitious.
XRP, in particular, has attracted more attention than other cryptocurrencies like Bitcoin or Ether due to its precarious legal status. While a 2023 court ruling found that XRP transactions involving retail buyers on public exchanges did not constitute a securities transaction, the SEC and CFTC classified XRP as a digital commodity on March 17, 2026. However, this classification is merely an interpretative release and not a permanent legal framework, leaving the potential for reversal by a future administration.
The CLARITY Act would firmly establish XRP’s status as a commodity in federal law and shift its regulatory oversight from the SEC to the CFTC, the agency responsible for oversight of commodities such as oil and gold. The significance of this codification cannot be understated, as it would offer a level of permanence that cannot be easily overturned by administrative change.
From a financial perspective, the stakes are high. Standard Chartered estimates that passing the bill could attract between $4 billion and $8 billion in XRP exchange-traded fund (ETF) inflows. Interest in XRP ETFs has already been demonstrated, with five spot XRP ETFs launched in late 2025 accumulating $1.41 billion in assets even before the CLARITY Act becomes law.
Despite this enthusiasm, market dynamics suggest caution regarding timing. Prediction markets currently assess the odds of the bill’s signing in 2026 at around 72%, while XRP’s price has remained relatively stable, fluctuating between $1.30 and $1.50 for several months. Many investors believe that much of the potential positive news may already be factored into the price.
With the House and a committee already supporting the bill, the Senate floor is where the final battle will unfold. The timing of the upcoming vote could significantly influence XRP’s trajectory in the coming months.
