CLARITY Act Could Boost Institutional Confidence in XRP Amid Regulatory Uncertainty

Financial institutions have been cautious about investing in XRP due to remaining regulatory uncertainties following the court decision in SEC v. Ripple, according to software engineer Vincent Van Code.

While the 2023 district court decision determined that secondary-market sales of XRP are not securities, Van Code emphasized that it does not provide the level of legal certainty required by major financial institutions.

The CLARITY Act could address these concerns by codifying digital asset classifications into federal law, providing stronger legal certainty and potentially influencing XRP adoption beyond the existing court victory.