XRP's Legal Status Unchanged Despite Senate CLARITY Act Defeat

Ripple's Chief Legal Officer Stuart Alderoty quickly moved to reassure markets after the Senate failed to pass the CLARITY Act, which aimed to clarify digital asset regulations. The bill's defeat was seen as a major blow to Ripple and XRP investors, but Alderoty argued that the outcome does not change XRP's legal status.

Alderoty pointed to two key pillars that solidify XRP's position: the 2023 federal court ruling that cleared XRP in secondary market sales and the March 2026 joint SEC-CFTC interpretation naming XRP a digital commodity. He emphasized that these rulings cannot be easily reversed, unlike agency interpretations.

The failure of the CLARITY Act means that rulemaking by the SEC and CFTC will now take center stage. Both agencies are seeking public comment on a harmonized framework for BTC, ETH, and XRP futures, which could set clear rules for trading and custody. This shift in focus is seen as a positive development for investors, who can now look forward to more durable regulations.

Alderoty's reassurance helped calm market nerves, but the Senate's vote still had an impact on cryptocurrency prices. XRP dropped 7.3%, while ETH fell 5.2% and BTC shed 3.7%. However, Alderoty emphasized that Ripple's operations continue unaffected by the vote.