The CLARITY Act Could Shift XRP From Retail Volatility to Institutional Custody

Banks and asset managers can purchase XRP in significant volumes if the CLARITY Act provides the legal certainty required to avoid fines and lawsuits. This institutional entry would move the token away from retail-driven price swings and toward a predicted price range of $2 to $3. The shift depends on the bill's ability to define whether a token is a token is a security and grant the CFTC power over most cryptocurrencies. The House of Representatives passed the the CLARITY Act, which defines digital assets as either digital commodities commodities of investment contracts. Tokens running on decentralized networks, such as XRP, because it runs on a decentralized network, are classified as digital commodities under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This formalization would reduce the risk of SEC enforcement actions. 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, with the volume of tokenized assets transferred on the ledger increasing 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.