As the US Digital Asset CLARITY Act moves closer to becoming law, many investors and supporters are eager to find out how it could shake things up for XRP. A cryptanalyst broke down certain parts of the bill which could directly affect XRPRipple and its stablecoin RLUSD. These key parts touch on XRP’s status as a commodity, its role in banking infrastructureand potential return opportunities for investors.
What the CLARITY Act means for XRP
In a recent X post, pseudonymous crypto analyst @Whiplash437 described the exact parts CLARITY law which could have the biggest impact on XRP. It started with Section 105, which defines digital assets and supports blockchain-based classification cryptocurrencies as commodities.
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According to the analyst, this section is important because it could take cryptocurrencies out of the tight, strict oversight of the Securities and Exchange Commission (SEC) and bring them under the jurisdiction of the Commodity Futures Trading Commission (CFTC). @Whiplash437 recorded that Section 105 could build a legal shield around XRP by reversing an earlier ruling by Judge Analisa Torres that XRP sales on the secondary market are not securitiesinto permanent federal law.
It then moved on to Section 110, which requires digital commodity exchanges, dealers and brokers to register for anti-money laundering (AML) purposes and comply with Bank Secrecy Act (BSA). The section also introduces the concept of “mature blockchains,” a classification that would fall under CFTC oversight.
@Whiplash437 described this part of the account as a test, noting that the XRP Ledger (XRPL) has already passed the criteria of a mature blockchain. He praised the growth of blockchain, noting that XRPL had 13 years without downtimeit has completed over 90 million transitions and boasts globally deployed decentralized validators. The analyst also said that this section will officially qualify XRP as a digital commodity under the CFTC.
How the bill could affect Ripple and RLUSD
In addition to XRP, @Whiplash437 also highlighted parts of the CLARITY Act that could be a big win for Ripple and RLUSD after the bill is adopted. He pointed to Section 401, which focuses on how financial institutions handle digital assets.
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In this section, the analyst said that US banks, credit unions and financial holding companies will be allowed to use digital assets for payments, custody, clearing and settlement. He also pointed out that this piece of legislation will effectively unlock the entire US banking sector Ripple’s infrastructure and XRP Ledger.
Finally, @Whiplash437 also tagged section 404, which prohibits yield payments on stablecoin holdings only. The analyst stated that despite the restriction, the law still allows cryptocurrency users to earn activity-based rewards through share, management and loyalty programs. He believes this policy will play a key role in shaping how RLUSD is offered in the US markets.
Featured image from Freepik, chart from Tradingview.com
