As the US Digital Asset CLARITY Act moves closer to becoming law, many investors and supporters are eager to know how it could shake things up for XRP. A crypto analyst has broken down the specific parts of the bill can have a direct impact on XRPRipple and its stablecoin RLUSD. These key components relate to XRP’s status as a commodity and its role within it banking infrastructureand potential return opportunities for investors.
What the CLARITY Act means for XRP
In a recent X-post, pseudonymous crypto analyst @Whiplash437 outlined the exact sections of the CLARITY Act that could have the biggest impact on XRP. He started with Section 105, which defines digital assets and supports blockchain-based classification cryptocurrencies as commodities.
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According to the analyst, this section is important because it could pull cryptocurrencies out of the tight, strict grip of the Securities and Exchange Commission (SEC) and place them firmly under the jurisdiction of the Commodity Futures Trading Commission (CFTC). @Whiplash437 noted that Section 105 could build a legal shield around XRP due to Judge Analisa Torres’ previous ruling that XRP sales on the secondary market are not securitiesconverted into permanent federal law.
He then moved on to section 110, which requires digital commodity exchanges, dealers and brokers to register for anti-money laundering (AML) purposes and comply with Bank Secrecy Act (BSA). The section also introduces the concept of “mature blockchains,” a classification that would fall under CFTC oversight.
@Whiplash437 described this part of the bill as a test, noting that the XRP Ledger (XRPL) has already met the mature blockchain criteria. He praised the growth of the blockchain, noting that XRPL has had this 13 years without downtimehas performed over 90 million transitions and has decentralized validators deployed worldwide. The analyst also said that this section would officially qualify XRP as a digital commodity under the CFTC.
How the bill could affect Ripple and RLUSD
In addition to XRP, @Whiplash437 also highlighted parts of the CLARITY Act that could be a big win Ripple and RLUSD once the bill is passed. He pointed to Section 401, which focuses on how financial institutions handle digital assets.
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In this section, the analyst said that US banks, credit unions and financial holding companies would be allowed to use digital assets for payments, custody, clearing and settlement. He also noted that this part of the bill will effectively unlock the entire U.S. banking industry Ripple’s infrastructure and the XRP ledger.
Finally, @Whiplash437 also highlighted Section 404 prohibits yield payments on just holding stablecoins. The analyst stated that despite the restriction, the bill still allows crypto users to earn activity-based rewards through staking, governance, and loyalty programs. He believes these policies will play a key role in shaping the way RLUSD is marketed in the US markets.
Featured image from Freepik, chart from Tradingview.com