XRP's Strong Legal Position May Withstand CLARITY Act Defeat

Ripple CEO Brad Garlinghouse believes that XRP's legal position is stronger than the broader crypto market, even if the CLARITY Act fails in the U.S. Senate. The company's completed court battle with the Securities and Exchange Commission has provided a degree of legal clarity for XRP, attracting more developers and commercial activity to the ecosystem.

Garlinghouse notes that this certainty is not the same as federal legislation, which the CLARITY Act aims to provide. Without it, companies outside of XRP's specific legal situation could continue facing uncertainty around registration, trading, and product development.

The vote on the market-structure bill on September 15 is seen as a crucial step towards durable U.S. crypto policy, with Coinbase CEO Brian Armstrong describing it as the most important near-term step. However, passage of the bill requires significant bipartisan support, which is uncertain given disagreements over stablecoin yields, ethics provisions, and anti-money-laundering requirements.

XRP has recently traded near the $1 level, while investment products linked to the token recorded $253.6 million in inflows during the second quarter. Despite this, Garlinghouse's message remains that blockchain adoption will continue regardless of Washington's timeline.