CLARITY Act markup delay: What it could mean for XRP

The debate over the Digital Asset Market CLARITY Act hit another pause after the Senate Banking Committee delayed a scheduled markup on January 15. The postponement does not kill the bill, but it does push out a decision that markets had been watching as a potential turning point for U.S. crypto regulation.

CLARITY is a market-structure proposal aimed at clarifying the long-running jurisdiction split between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and — critically — codifying a distinction between the investment contract and the token itself. 

In practice, that approach could allow certain assets to trade as commodities in secondary markets even if earlier fundraising arrangements were deemed securities-like. This ‘token ≠ contract’ framing is one reason XRP tends to surface in CLARITY-related discussions.

Why the markup was postponed 

The delay followed a late-stage policy fight and industry pushback over several provisions tied to market structure and product mechanics. It was argued that parts of the bill would create unintended constraints for segments of digital-asset markets. Lawmakers have signalled that the work is ongoing, with reports suggesting the bill is being eyed again in late January, but the schedule remains subject to negotiations.

What the CLARITY debate could mean for XRP

1. CLARITY passes in a ‘broad clarity’ form

In the most constructive outcome for XRP, the bill advances with a clear separation between the investment contract and the token itself, alongside workable maturity and decentralisation criteria. 

Under this framework, XRP’s secondary-market trading could fall more squarely under commodity-style treatment, aligning it more closely with assets like BTC and ETH in terms of market structure.

Possible downstream effects:

• Reduced compliance friction for U.S.-based venues and intermediaries.
• Greater comfort for institutional allocators that have avoided assets with unresolved classification risk.
• There may be a gradual reduction in the regulatory risk premium embedded in XRP, rather than a sudden surge. Markets may price in greater durability of demand.

2. CLARITY passes, but criteria tighten

A more nuanced outcome would see CLARITY pass with narrower definitions around decentralization, token maturity or eligible products. 

In this case, XRP could still benefit from the Act’s core principle — that a token is not automatically a security — but without achieving a fully unambiguous classification.

Possible downstream effects:

• Improved legal footing, but continued case-by-case interpretation.
• Incremental expansion of institutional participation, rather than a step-change.
• XRP remains usable across markets but with selective caution from some U.S. firms.
• XRP’s price may likely remain range-bound, reacting episodically to policy developments.

3. CLARITY stalls or slips materially

If the bill stalls again or slips materially on the legislative calendar, the status quo largely persists. 

XRP would continue to operate under a combination of court precedent, agency guidance and enforcement history rather than a single statutory framework.

Possible downstream effects:

• Regulatory uncertainty remains a gating factor for conservative institutions.
• Product development and listings proceed, but at a measured pace.
• Market sentiment continues to swing around policy headlines rather than fundamentals.
• XRP’s price behavior may likely continue to reflect headline risk and limited upside follow-through.

Important information: ​​This informational content is written by Crypto.com and should not be considered as an investment recommendation or advice. Trading cryptocurrencies carries risks, such as price volatility and market risks. Before deciding to trade cryptocurrencies, consider your risk appetite.  All forecasting methods, scenarios, and examples are illustrative and subject to market uncertainty.