CLARITY Act Final Draft Settles Debate Over XRP Classification
A proposed bill in the US Senate, known as the CLARITY Act, has reached its final draft. The text of the bill addresses several key issues related to digital assets, including the classification of XRP. According to attorney Bill Morgan, a prominent advocate for Ripple's position on XRP, the final draft settles the debate over whether XRP should be considered a commodity in secondary markets regardless of Ripple's supply.
Morgan stated that 'Deal with it Bitcoin maxis,' referencing critics who have argued that Ripple's large holdings of XRP should disqualify the token from being considered a commodity. The CLARITY Act would require officials to either divest significant digital asset holdings or place them into a qualified blind trust, and exchanges would be barred from listing any digital asset issued in violation of new rules.
The bill also includes provisions related to stablecoins, such as a 'circuit breaker' mechanism giving federal regulators the authority to intervene if community banks experience significant deposit flight into stablecoins. In addition, the bill adds tighter restrictions on conflicts of interest and affiliate trading involving digital commodity exchanges, brokers, and dealers.