What to Know:
- New bipartisan bill proposes clear regulatory framework for digital assets.
- XRP could be formally placed under CFTC oversight as a commodity.
- Potential outcomes include full U.S. legal clarity and smoother institutional adoption.
The U.S. Senate Committee on Agriculture has released a bipartisan discussion draft proposing a regulatory framework for digital assets, which could significantly impact XRP. This legislation could formally place XRP and other major cryptocurrencies under the oversight of the Commodity Futures Trading Commission (CFTC) as a commodity. This move could have significant consequences for Ripple and the broader crypto market.
The proposed bill, developed by Chairman John Boozman (R-AR) and Senator Cory Booker (D-NJ), grants the CFTC new authority to regulate the “digital commodity” spot market, establishing a separate regulatory lane from the Securities and Exchange Commission (SEC). For XRP, this classification would codify a legal distinction that was at the heart of Ripple’s long-running dispute with the SEC. This clarity is seen as a major win for the XRP community.
“The question was simple: is XRP a security or a commodity? A judge already ruled in Ripple’s favor in 2023. Now, Congress is basically turning that decision into law,” he stated.
The draft legislation also includes protections for self-custody, affirming an individual’s right to hold and transact digital assets directly without an intermediary. It also clarifies that software developers and blockchain infrastructure providers, such as those running nodes, should not be treated as financial institutions solely for their non-custodial roles. These clarifications provide much-needed certainty for participants in the crypto space.
This regulatory development arrives at a pivotal moment for XRP, which recently attracted $28.2 million in inflows, bucking the negative trend seen in major assets like Bitcoin (BTC) and Ethereum (ETH). At the same time, the market anticipates the launch of spot XRP ETFs, with five such funds recently added to the Depository Trust & Clearing Corporation’s (DTCC) active roster. The combination of regulatory clarity and investment product availability could drive further institutional adoption of XRP.
While the Senate draft requires further negotiation and passage, it represents the most concrete legislative effort to date to resolve the question of asset classification. Market watchers believe the combination of potential regulatory clarity, institutional investment interest, and the imminent launch of spot ETFs creates a powerful narrative for XRP. This positive outlook reflects growing confidence in the future of XRP.
Source: Original article
