CLARITY Act Update Triggers XRP Price Volatility Ahead of FOMC Meeting
The US Senate Republicans have released an updated version of the CLARITY Act, which includes new provisions requiring non-decentralized DeFi protocols to register with the Commodity Futures Trading Commission (CFTC). This move aligns with Section 10301 of the Senate Banking Committee's version. The draft also limits DeFi provisions to spot or cash digital commodity transactions.
The update is intended to address concerns about blockchain prediction markets and clarifies that credit unions may provide crypto-related services under regulatory standards. However, the passage of the CLARITY Act still faces resistance from some lawmakers due to concerns about money-laundering protections, ethics regulatory measures, and threats to traditional bank deposits.
XRP's price has been affected by these developments, trading near $1.33 as the crypto market capitalization fell 1.47% over 24 hours to $2.61 trillion. The Federal Reserve meeting on September 15-16 is also expected to impact XRP's price, with futures markets indicating a roughly 70% chance of a quarter-point increase in borrowing rates.