After years of regulatory chaos, the US is finally setting clear rules for crypto.

Here’s how the new CLARITY Act could reshape the market—and what it means for $XRP 👇

🚨 On July 17, 2025, the US House passed the CLARITY Act (H.R. 3633), establishing the first comprehensive digital asset market structure in US law.

This thread breaks down the Act’s technical provisions and what it means for $XRP and the XRPL ecosystem.

What Does the CLARITY Act Do?

Defines “digital commodities” vs. “restricted digital assets” based on decentralization, utility, and governance structure.

Splits jurisdiction:

• CFTC regulates “digital commodities” (e.g., decentralized, utility-based tokens).

• SEC oversees “restricted” tokens (with profit rights, central control, or governance claims).

Technical Criteria: Commodity vs. Security

Digital assets are classified by network maturity, decentralization, and rights attached.

A decentralized, open-source, fully operational network with no profit rights = likely “digital commodity.”

Tokens with pre-mines, ongoing issuer control, or expectation of profit = likely “restricted.”

XRP Case in Focus

XRP’s legal status has been central to the US regulatory debate.

Under CLARITY, #Xrp🔥🔥 could qualify as a “digital commodity”—since XRPL is decentralized, open-source, and has no ongoing profit commitment from Ripple to token holders.

Why This Matters for Ripple/XRPL:

Ends “#Regulation by Enforcement”—clear statutory definitions replace ad hoc SEC lawsuits.

Enables compliance: US exchanges and financial institutions can list, custody, and build on XRP with regulatory certainty.

Unlocks banking adoption: Banks and FinTechs can use XRPL for settlement, #Tokenization , and cross-border flows.

Technical Provisions Affecting #XRP Holders:

Exemptions from SEC registration: If classified as a commodity, XRP would not face securities registration hurdles.

AML, KYC & Recordkeeping: Exchanges supporting XRP must comply with enhanced anti-money laundering and reporting protocols under BSA/FinCEN rules.

Market Structure Rules

Provisional registration: Allows platforms listing XRP to operate during the CFTC/SEC rulemaking period (12 months).

Separation of funds: Mandates custodians keep client assets segregated, reducing counterparty risk.

Impact on US Crypto Industry

US-based institutions can now launch XRP-based products (ETPs, derivatives, settlement rails) without ambiguity.

Fosters competitive parity with global jurisdictions already recognizing XRP as a utility token or exchange medium.

What’s Next?

The CLARITY Act advances to the Senate—potential amendments may tweak the definitions, but House passage is a foundational shift.

If signed into law, rulemaking begins immediately: CFTC/SEC must clarify implementation within 1 year.

The CLARITY Act marks a turning point for XRP and XRPL, ending legal uncertainty and paving the way for US institutional adoption.

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