Senate Republicans Add Definition That Could Classify XRP as a Commodity

Senate Republicans circulated a revised draft of the CLARITY Act on the eve of a cloture vote, expanding the bill to 635 pages from 616. The amendment introduces a new definition for “ancillary asset” that directly impacts the regulatory status of XRP.

New Definition of Ancillary Asset

The draft defines an ancillary asset as a network token whose value depends on the entrepreneurial or managerial efforts of an originator or a related party. The language explicitly states that such assets remain network tokens and are treated as digital commodities in secondary markets, irrespective of the quantity held by the originator.

Implications for XRP

Under the revised language, XRP would be classified as a digital commodity when traded on exchanges, regardless of how much XRP Ripple retains on its balance sheet. This addresses the concentration argument that has been used to challenge XRP’s commodity status.

Legislative Context

The amendment arrives alongside reported concessions from the White House on conflict‑of‑interest rules and state‑level enforcement powers, aimed at securing Democratic support for the bill. Cloture on the motion to proceed requires 60 votes; Republicans hold 53 seats, making bipartisan votes essential.

What Remains Unsettled

• The definition does not affect Ripple’s own token sales, which were central to the original lawsuit.
• It does not create registration regimes for exchanges or custodians, which will require separate agency rulemaking.
• The SEC’s broader interpretive framework for digital assets remains unchanged.

Potential Risks for XRP Holders

If the bill advances, the definition could be amended or removed during debate, leaving XRP’s classification uncertain. A failed cloture vote or future legislative changes could also reverse the provision.