Senate Stalemate Delays Progress of XRP’s CLARITY Act

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solution has been launched, representing a significant milestone for market participants as the U.S. moves forward with digital asset regulation. On July 17, 2025, the House of Representatives passed the Digital Asset Market Clarity Act (CLARITY Act) with strong bipartisan support (294–134), drawing attention to how the Senate will finalize the legislation. The act, which clarifies regulatory authority between the SEC and CFTC and outlines digital asset classifications, is now under Senate evaluation. Supporters claim this law will finally clear up long-standing legal uncertainties for projects like XRP, paving the way for greater institutional participation and minimizing compliance issues title1 [ 1 ].

The momentum behind the Clarity Act comes in the wake of Ripple’s historic court win in its extended battle with the SEC, concluding in 2024 with a decision that XRP does not qualify as a security by default. Ripple CEO Brad Garlinghouse has subsequently called on lawmakers to fast-track the CLARITY Act, stressing that regulatory certainty is vital for the U.S. to lead in blockchain technology. “If regulations remain unclear, businesses will relocate abroad, undermining our competitive standing,” he warned during a Senate Banking Committee session title3 [ 3 ]. This view has been widely shared among XRP supporters, with Reddit commentators referring to the act as the “final green light” for widespread XRPL adoption and forecasting the approval of as many as 30 ETFs by the end of the year title2 [ 2 ].

Technical trends offer further encouragement. Analysts have highlighted a bullish MACD crossover on XRP’s two-day chart, pointing to past instances of rapid price movement following such signals. Market strategist EGRAG CRYPTO anticipates a possible rally to the $5–$6 range if the pattern holds, referencing stronger momentum indicators and established support prices. Ripple’s ongoing expansion of its payment network is also fueling institutional interest, drawing in additional enterprise clients title4 [ 4 ].

The fate of the CLARITY Act in the Senate remains unresolved. Although a Republican-sponsored draft proposal has been introduced, bipartisan talks are in progress to accommodate Democratic feedback and harmonize the bill with the House version. Senator Kirsten Gillibrand underscored the importance of completing fiscal cliff negotiations before turning to crypto policy, and noted that the Senate’s workload may postpone the bill’s passage until the end of 2025 title1 [ 1 ]. After approval, regulatory bodies like the SEC and CFTC will embark on a years-long process to create detailed rules, a process compared by analysts to the drawn-out enactment of Dodd-Frank regulations title1 [ 1 ].

The recently launched XRP product, introduced in parallel with these regulatory changes, aims to be a pioneering offering that benefits from the clarity provided by the CLARITY Act. Ripple has highlighted its capacity to simplify international payments and lower liquidity expenses for businesses, which aligns with the legislation’s intent to establish a transparent market environment. The debut of this product has already sparked interest among ETF managers, with some expecting it to be included in tokenized investment portfolios as soon as 2026 title2 [ 2 ].

Although regulatory processes are ongoing, the combination of legislative efforts, legal milestones, and strong market fundamentals is providing momentum for XRP. Both analysts and investors are watching the Senate’s decisions closely, with the potential for XRP to surpass $5 per coin hinging on the bill’s passage and subsequent regulatory rollout title2 [ 2 ] title4 [ 4 ].