XRP Plummets After CLARITY Act Stalls, Lawyer Cites Institutional Demand for Clarity
XRP's price plummeted by over 8% in 24 hours to $1.29 on September 16, following a setback for the CLARITY Act, a proposed US regulation aimed at clarifying crypto industry guidelines.
Australian lawyer William Arthur Morgan attributes XRP's decline to its potential benefits from legal clarity, stating that 'the main reason XRP's price slumped was that it stood to gain more than most crypto from the passage of the CLARITY Act.'
Morgan highlights that institutions increasingly interested in XRP need a clear regulatory framework for the crypto market.
Ripple Labs' Chief Legal Officer Stuart Alderoty emphasized XRP's established legal clarity, citing a 2023 federal court ruling and joint interpretations from the SEC and CFTC naming XRP a digital commodity.