Crypto Bill Elevates XRP, Solana, Dogecoin to Bitcoin’s Legal Status
A new draft of the “Clarity Act” could significantly change the regulatory landscape for major cryptocurrencies like XRP, Solana, and Dogecoin. This legislation aims to align these digital assets with Bitcoin’s legal status, which may enhance their acceptance and usage in institutional finance.
Key Provisions of the Clarity Act
The draft, introduced by Senator Tim Scott, proposes a new classification for specific cryptocurrencies as “non-ancillary” assets. This classification would effectively exempt them from being treated as securities, relieving them from certain Securities and Exchange Commission (SEC) disclosure requirements.
Criteria for Inclusion
- A token will be classified as non-ancillary if it serves as the principal asset of an exchange-traded product (ETP) listed on a national securities exchange by January 1, 2026.
- Assets like XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink are expected to benefit from this classification.
Impact on Institutional Compliance
Experts believe that the immediate implications of this bill focus more on institutional access than on short-term price surges. The clarity it provides could widen participation among institutional investors, enhancing compliance protocols.
According to recent market data, Bitcoin was trading near $93,000, reflecting a modest gain of 1.9%, while altcoins responded with muted movements. Predictions from Myriad, a market platform, suggest an 18% chance of an alt season occurring in the upcoming quarter.
Broader Shifts in Regulation
The Clarity Act represents a significant shift towards regulating crypto assets based on their distribution and utility within established financial frameworks. Industry experts highlight that if the legislation passes, it could enhance institutional demand for cryptocurrencies like XRP, SOL, and DOGE.
Political Landscape and Uncertainties
The fate of the Clarity Act is intertwined with political dynamics, particularly with the upcoming mid-term elections. The draft contains elements that cater to various interests, such as protections for software developers involved in decentralized finance (DeFi).
The Senate Banking Committee is scheduled to discuss the bill in a markup hearing soon, marking a critical step in shaping the future of cryptocurrency regulation.
