Senate delays XRP bill, price drops 8%

XRP is taking the Clarity Act news harder than the rest of the crypto market. The bill, which aims to define clear rules for digital assets, has stalled in the Senate Banking Committee, leaving traders and analysts worried about the future of XRP and other cryptocurrencies tied to ongoing legal questions.

The Senate’s hesitation comes after years of regulatory uncertainty. The U.S. Securities and Exchange Commission (SEC) sued Ripple Labs in 2020, arguing that XRP was an unregistered security sold to investors. Ripple has fought the case, winning partial victories, but the legal battle has left exchanges like Coinbase delisting XRP in some regions and banks wary of processing transactions. The Clarity Act was supposed to fix that by setting clear guidelines, but partisan divisions and competing priorities in Congress have delayed progress.

Now, XRP’s price has dropped more than 8% in the last week, underperforming Bitcoin and Ethereum. Market watchers say the delay sends a signal that the U.S. won’t move quickly to resolve crypto’s regulatory gray areas. Ripple’s CEO, Brad Garlinghouse, has criticized lawmakers for inaction, calling it a “missed opportunity.” Meanwhile, smaller crypto firms fear the uncertainty could drive innovation—and jobs—overseas.

What happens next depends on whether Senate leaders revive the bill before the next election cycle. If the Clarity Act dies in committee, the SEC could double down on enforcement, targeting not just XRP but other tokens it considers securities. That would force more exchanges to drop risky assets, shrink liquidity, and push crypto startups to register in friendlier jurisdictions like Singapore or Dubai. For XRP holders, the stakes are simple: clearer rules could mean a surge in adoption—or more years of legal limbo.