CLARITY Act Final Draft Settles XRP Commodity Status Debate

A recent draft of the CLARITY Act has settled a long-running debate in the crypto space, according to attorney Bill Morgan. The bill's final text classifies XRP as a commodity in secondary markets regardless of Ripple's holdings.

Morgan took to social media to address critics who have argued that Ripple's large XRP holdings should disqualify the token from commodity status.

The finalized 635-page CLARITY Act text reflects 126 changes requested by Democrats during negotiations, with a significant update centering on ethics provisions backed by President Trump.

Federal officials would be required to either divest significant digital asset holdings or place them into a qualified blind trust under the bill. State attorneys general would also gain authority to enforce bans on officials issuing, sponsoring, or holding major stakes in digital assets, with exchanges barred from listing any digital asset issued in violation of those rules.