XRP gains on Senate CLARITY Act momentum

XRP has emerged as the primary beneficiary of a shifting regulatory narrative in Washington. The Senate Banking Committee's release of the CLARITY Act framework marks the first concrete legislative path toward US crypto clarity, with an aggressive timeline: markup Thursday, July 4 passage target. Unlike previous bills that languished in committee, this one has bipartisan traction and explicit executive backing. Ripple has spent years positioning XRP as a compliant payment token, and legal clarity removes the regulatory overhang that has weighed on its valuation.

Monetary flows underscore institutional conviction. Bitwise's XRP ETFExchange-Traded Fund - a basket of securities trading like a single stock. has seen strong inflows, and data shows 25.8 million dollars flowing into XRP products as the markup vote approaches. Rakuten Wallet in Japan now lets users swap loyalty points for XRP to spend at 5 million+ retail locations, expanding merchant adoption. Monthly XRP transactions on the network jumped 65% year-over-year to 71 million, signalling real economic use beyond speculation. Funding rates on XRP futures turned negative on Binance, a historical signal of reset phases after peaks.

The narrative appeals to three constituencies. Retail sees a potential 10x from $1.50 (current levels near $1.45) if CLARITY passes and institutional money enters. Ripple insiders cite years of work with regulators and central banks as vindication. Traditional finance views regulatory clarity as a gate-opener for stablecoinA cryptocurrency designed to maintain a stable value, typically pegged to the US dollar. and payment adoption, particularly in emerging markets where Ripple has cemented partnerships.

Risks remain material. Even if CLARITY passes, implementation could be narrow, excluding some token types. Sceptics argue that XRP's utility case is overstated; most volume remains speculative. Negative funding rates suggest retail exhaustion at current levels. A failure to pass or watering down of the bill could trigger a sharp reversal, especially if crypto sentiment weakens amid broader macro headwinds.