Curious About What The CLARITY Act Says About XRP? Here Are The Parts To Focus ON

by

Curious About What The CLARITY Act Says About <a href="https://bbg-news.com/xrp-usd/">XRP</a>? Here Are The Parts To Focus ON

As the US Digital Asset CLARITY Act moves closer to becoming law, people are keen to understand what it means for XRP. A crypto analyst has explained how specific parts of the bill could affect XRP, the company Ripple, and its stablecoin, RLUSD. The analysis focuses on how the bill defines XRP – whether it’s considered a commodity – its potential use within the banking system, and possible investment opportunities.

What The CLARITY Act Means For XRP

Crypto analyst @Whiplash437 recently explained on X which parts of the CLARITY Act could affect XRP the most. He began by highlighting Section 105, which defines digital assets and could lead to cryptocurrencies built on blockchains being categorized as commodities.

The analyst believes this section is important because it could shift oversight of cryptocurrencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC). According to @Whiplash437, this section could legally protect XRP by making the previous court decision – that XRP’s resale isn’t considered a security – a lasting federal law.

Next, he discussed Section 110, which mandates that digital commodity exchanges, dealers, and brokers register for anti-money laundering (AML) compliance and follow the Bank Secrecy Act (BSA). This section also defines “mature blockchains” and places them under the oversight of the CFTC.

According to @Whiplash437, this part of the bill is essentially a confirmation of what’s already true: the XRP Ledger (XRPL) is a well-established blockchain. He highlighted XRPL’s impressive track record – 13 years without any interruptions, over 90 million transactions processed, and a network of validators located around the world. He believes this section of the bill will formally recognize XRP as a digital commodity under the regulations of the CFTC.

How The Bill Could Affect Ripple And RLUSD

In addition to XRP, Whiplash437 noted that the CLARITY Act contains provisions that could greatly benefit Ripple and RLUSD if it becomes law. Specifically, he drew attention to Section 401, which addresses how banks and other financial institutions manage digital assets.

According to the analyst, this part of the bill would let US banks, credit unions, and financial companies use digital assets for things like payments, safekeeping, and processing transactions. He believes this will open up the entire American banking system to Ripple’s technology and the XRP Ledger.

Additionally, analyst @Whiplash437 pointed out that Section 404 of the bill prohibits paying rewards simply for holding stablecoins. However, he noted the bill *does* still permit earning rewards through activities like staking, participating in governance, and loyalty programs. He predicts this rule will significantly influence how RLUSD is made available throughout the US.

Read More

2026-05-19 00:43