Senate Blocks CLARITY Act, Leaving Crypto Regulation Up to Agencies

The US Senate recently voted on the CLARITY Act, a bill aimed at providing comprehensive federal crypto regulation. The vote fell short of the necessary 60 votes, with 49 senators voting in favor and 50 against, leaving the legislation stalled for now.

Ripple's Chief Legal Officer, Stuart Alderoty, responded to the news by reassuring XRP holders that their token's legal position remains unchanged despite the setback. He pointed out that a 2023 federal court ruling established XRP is not a security and that the SEC and CFTC issued a joint interpretation in March naming XRP a digital commodity.

Ripple CEO Brad Garlinghouse expressed disappointment over the vote, but emphasized that agency action will continue to fill the gap left by stalled legislation. He expects the SEC and CFTC to proceed with rulemaking without the bill's passage.