XRP Tanks 10% as Senate Blocks CLARITY Act

XRP plummeted by as much as 10% to $1.29 on September 16, following the US Senate's decision to block the CLARITY Act.

This marks the steepest fall among major crypto assets, with XRP declining significantly more than Bitcoin (2.2%), Ethereum (3.6%), and Solana (4%).

Ripple's chief legal officer, Stuart Alderoty, maintained that the company stands 'on settled ground', citing a 2023 federal court ruling and a joint interpretive release from the SEC and CFTC in March, which classified XRP as a digital commodity.

The failed vote to pass the CLARITY Act has left rulemaking in the hands of regulators, with no market structure law expected until 2027. This slower path may have a lower ceiling for XRP, as rulemaking can be challenged and delayed.