Markets
XRP Plummets After Senate Rejects Digital Asset Market Clarity Act
XRP fell more than 8% after the Senate blocked a key crypto bill, even as the token’s existing US regulatory treatment remained intact. CryptoSlate data showed XRP falling as low as $1.27 before recovering to about $1.29, extending a decline from roughly $1.42 on September 14. The selloff coincided with broader weakness across major cryptocurrencies and a wave of leveraged long liquidations.
The price action followed US lawmakers’ rejection of an effort to advance the Digital Asset Market Clarity Act, with a 49-50 vote failing to invoke cloture on a motion to proceed to H.R. 3633. This outcome denied one of the crypto industry’s biggest legislative priorities enough support to reach Senate debate, removing a near-term route toward establishing a federal market-structure framework.
Ripple Chief Executive Brad Garlinghouse expressed that the result “stings,” but argued that it does not alter the company’s commercial trajectory, citing ongoing demand across traditional finance and the digital-asset industry.
Despite the setback, Ripple's confidence rests partly on the regulatory ground XRP gained before the CLARITY vote. Chief Legal Officer Stuart Alderoty maintains that XRP’s treatment remains intact, pointing to actions by the SEC and CFTC that classified XRP among 18 assets identified as digital commodities. This classification provides Ripple with an advantage as the broader digital-asset industry continues to operate without comprehensive statutory market structure.
However, the protection is less durable than legislation, as it relies on existing laws and leaves room for the SEC to revise its approach. Ripple expects SEC Chairman Paul Atkins and CFTC Chairman Mike Selig to take a larger role in developing crypto rules, while the company remains engaged with both agencies moving forward.
Institutional demand for XRP-linked products remains substantial despite the token's selloff, with US spot XRP exchange-traded funds attracting about $1.71 billion in cumulative net inflows through September 14. Ripple aims to continue expanding its global business while advocating for clearer U.S. rules.
FAQ
What caused XRP to plummet over 8%?
XRP's decline was triggered by the Senate's rejection of the Digital Asset Market Clarity Act, which was a key legislative priority for the crypto industry.
What was the outcome of the Senate vote on the Digital Asset Market Clarity Act?
The Senate voted 49-50 against invoking cloture on the motion to proceed to H.R. 3633, effectively blocking the bill from advancing.
How did Ripple's executives respond to the Senate's decision?
Ripple's CEO Brad Garlinghouse expressed disappointment, stating that the result 'stings,' but emphasized that it does not change the company's commercial trajectory.
What is the current regulatory status of XRP after the failed bill?
Despite the setback, Ripple's Chief Legal Officer Stuart Alderoty stated that XRP's regulatory treatment remains intact, as it has been classified as a digital commodity by the SEC and CFTC.
What are Ripple's plans moving forward in light of the regulatory environment?
Ripple intends to continue expanding its global business while advocating for clearer U.S. regulations and engaging with the SEC and CFTC to help shape crypto rules.