XRP Drops 10% After Senate Blocks CLARITY Act, Ripple Cites Legal Ground

XRP slid roughly 10% to $1.29 on Sept. 16, marking the steepest decline among major crypto assets that day. Bitcoin fell 2.2%, ether 3.6% and solana 4%.

Market Reaction to the Senate Vote

The Senate’s 49‑50 cloture vote halted rulemaking on the CLARITY Act, leaving any market‑structure legislation postponed until at least 2027. XRP had risen as much as 9.8% in the run‑up to the vote, peaking at $1.49 on Sept. 14, before the drop.

Regulatory Context

On March 17, the SEC and CFTC issued a joint interpretive release naming 18 digital assets, including XRP, as digital commodities rather than securities. This formal agency action is binding on both regulators.

Ripple’s Response

Ripple’s chief legal officer, Stuart Alderoty, said the company and XRP “stand on settled ground,” citing two points:

• A 2023 federal court ruling that programmatic XRP sales on exchanges were not securities transactions.
• The March 17 SEC‑CFTC interpretation that classifies XRP as a digital commodity.

Ripple’s corporate account called the Senate vote “a tremendous missed opportunity” and reiterated the need for clear regulatory rules.

Outlook

While Ripple points to legal clarity, the market remains volatile. The current price of $1.29 reflects the immediate impact of the Senate decision, and further regulatory developments could influence future price movements.