XRP Price Drops as Senate Blocks Crypto Bill, But Regulatory Advantage Remains

XRP plummeted over 8% after US lawmakers rejected the Digital Asset Market Clarity Act, which would have provided clarity on federal market-structure for cryptocurrencies. The token's price dropped to $1.27 before recovering to around $1.29 by press time, as the broader crypto market also experienced weakness.

Ripple CEO Brad Garlinghouse described the vote's outcome as 'stinging,' but emphasized that it wouldn't alter the company's commercial trajectory. He pointed out that demand remains strong across traditional finance and the digital-asset industry, citing the continued expansion of Ripple's global business.

Ripple attributes its regulatory advantage to a March decision by the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which identified XRP as a digital commodity based on its characteristics. This classification remains intact despite the Senate setback, but is less durable than legislation and leaves room for future revisions or refinements.

The company expects SEC Chairman Paul Atkins and CFTC Chairman Mike Selig to play a larger role in developing crypto rules, and will remain engaged with both agencies as they move forward. Institutional demand for XRP-linked products remains substantial, with US spot exchange-traded funds attracting around $1.71 billion in cumulative net inflows through September 14.