$XRP Classification Hinges on Single Definition Inserted into CLARITY Act

Senate Republicans released a revised version of the CLARITY Act just hours before the cloture vote, adding 19 pages to the original draft. The new language defines an ancillary asset as a network token whose value depends on entrepreneurial or managerial efforts associated with its originator.

This definition classifies $XRP as a digital commodity in secondary markets, regardless of how much of it Ripple holds. This change is significant because it removes concentration as an argument against treating $XRP as a commodity.

The revised draft also includes concessions to Democrats, such as expanded conflict-of-interest rules and state-level enforcement powers. These changes are likely intended to buy Democratic votes in exchange for industry favors.

While the exact authorship of the ancillary asset definition is unclear, it's evident that the industry has been heavily involved in shaping this legislation through lobbying efforts and campaign contributions.