XRP Legal Clarity Signals New Crypto Era

What to Know:

• A provision in the U.S. Digital Asset Market Clarity Act could classify XRP as a “network token,” similar to Bitcoin and Ethereum.
• The bill aims to create regulatory clarity by defining certain digital assets as non-securities based on their inclusion in exchange-traded products (ETPs).
• This matters because it could significantly alter XRP’s regulatory treatment in the U.S., potentially attracting more institutional investment.

A draft of the U.S. Digital Asset Market Clarity Act contains a provision that could place XRP in the same regulatory category as Bitcoin and Ethereum. This development hinges on the bill’s treatment of certain digital assets already backed by exchange-traded products (ETPs). If passed, the Act could represent a major shift in the regulatory landscape for XRP, potentially unlocking new avenues for institutional adoption.

Defining “Network Tokens”

The Digital Asset Market Clarity Act introduces a new category called “network tokens.” According to Eleanor Terrett, if a token serves as the primary asset within an ETP listed on a U.S. exchange before January 1, 2026, it would be classified as a network token and not considered a security. This distinction is critical because it would exempt such tokens from stringent disclosure requirements typically applied to securities.

XRP’s Position

XRP meets the criteria for a network token due to existing ETPs that use it as the primary asset. These ETPs have already gained regulatory approval and are actively traded. Consequently, under the Clarity Act, XRP would be legally treated similarly to Bitcoin and Ethereum, both of which are generally considered commodities by regulators. This alignment could simplify regulatory compliance for institutions seeking to invest in XRP.

Market-Driven Regulation

This provision reflects a market-driven approach to regulation. Instead of requiring regulators to individually assess decentralization or control, the bill leverages the existing financial infrastructure of nationally listed ETPs. This approach offers a pragmatic way to categorize tokens based on their established market presence. Given XRP’s history of regulatory scrutiny, this shift in perspective is noteworthy.

According to Eleanor Terrett, The Digital Asset Market Clarity Act would treat $XRP same as BTC and ETH. pic.twitter.com/vWPScIqJjV

— TheCryptoBasic (@thecryptobasic) January 13, 2026

Historical Context

XRP’s journey toward regulatory clarity has been long and complex. Launched in 2012, it initially operated in a regulatory environment that offered little guidance. However, the SEC’s 2020 lawsuit against Ripple, alleging that XRP was an unregistered security, thrust the token into the regulatory spotlight. While a 2023 court ruling provided some relief by stating that XRP is not inherently a security, the Clarity Act would solidify this position in law.

Senate Committee Delay

The Senate Agriculture Committee has postponed its markup of the crypto market structure legislation. Chairman John Boozman cited the need for additional time to maintain bipartisan support as the reason for the delay. The committee now plans to consider the legislation in the last week of January. This delay underscores the ongoing complexities of crafting comprehensive crypto regulations.

If the Digital Asset Market Clarity Act passes, it would represent a significant step forward for XRP, potentially unlocking new opportunities for institutional investment and broader market adoption. However, the legislative process is ongoing, and the final outcome remains uncertain. Investors should closely monitor further developments and assess the potential impact on their portfolios.

Related: XRP Targets EU Expansion After E-Money Nod

Source: Original article