The CLARITY Act Could Formalize XRP as a Digital Commodity to Unlock Institutional Custody
IR
Iris Reeves
SEC enforcement action · Apr 18, 2026
Source: DojiDoji Data Terminal
Institutional asset managers can allocate capital to XRP if a defined regulatory treatment is established. This shift depends on the CLARITY Act, which has passed the House of Representatives and now awaits Senate approval. The bill defines digital assets as either digital commodities or investment contracts. Tokens running on decentralized networks are classified as digital commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC). Because XRP runs on a decentralized network, the act would formalize its status as a digital commodity, reducing the risk of SEC enforcement actions.
Bank adoption of XRP as payment infrastructure depends on custody provisions within the bill. If the CLARITY Act becomes law, banks would have the legal clarity to store digital commodities without regulatory hesitation. JPMorgan analysts report that lawmakers have narrowed contentious issues from over a dozen to just two or three pending points, with stablecoin regulation nearing a compromise. To reach the floor for a vote before Memorial Day, the bill must clear the Senate Banking Committee by mid-May. Senator Lummis warned that missing this window could delay the measure until 2027.
Real-world asset activity on the XRP Ledger has increased. The volume of tokenized assets transferred on the ledger increased 875% in 30 days to $101.7 million. The total amount of real-world assets on the XRP Ledger is nearly $2.5 billion this year.