"The CLARITY Act aims to define how cryptocurrencies are regulated in the U.S. by drawing a clear line between securities and commodities-ending the SEC-CFTC jurisdictional battle that has plagued XRP regulation for years. For XRP, the key provision declares it not a security by statute. The market structure bill defines "network tokens" outside securities law, including tokens that serve as the principal asset of a U.S.-listed exchange-traded product."
"This Ripple regulatory clarity ends years of uncertainty. XRP spent 2020 to 2025 in SEC litigation. The case concluded in August 2025 when both parties dropped appeals and Ripple settled for $125 million-far below the SEC's original $2 billion demand. The CLARITY Act would codify XRP's non-security status in federal law, putting XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink on the same regulatory footing as Bitcoin and Ethereum."
Two regulatory developments could reshape XRP in 2026: the Digital Asset Market CLARITY Act and Ripple’s conditional approval for a national bank charter combined with a pending Federal Reserve access application. The CLARITY Act aims to draw a statutory line between securities and commodities and would declare XRP not a security, defining "network tokens" outside securities law. Ripple’s bank charter and potential Fed access would integrate the Ripple Network into mainstream finance. Spot XRP ETFs launched in late 2025 absorbed over $1.3 billion in their first 50 trading days. XRP faced SEC litigation from 2020 to 2025, concluding with a $125 million settlement in August 2025. The CLARITY Act hit a roadblock in January 2026.
Read at 24/7 Wall St.
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