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XRP Falls 9% Following Senate Vote Against CLARITY Act
XRP, the cryptocurrency associated with Ripple, experienced a significant drop of 9% to $1.28 following the U.S. Senate's failure to advance the CLARITY Act. The bill, which aimed to provide regulatory clarity for digital assets, was rejected in a vote that saw 49 in favor and 50 against, falling short of the 60 votes needed to proceed to debate. This legislative setback has raised concerns among XRP holders, particularly as the coin had previously surged to $1.49 just days before the vote.
Despite the decline, XRP retains its classification as a commodity by both the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Additionally, five spot exchange-traded funds (ETFs) linked to XRP are currently trading in the United States, with a total of $1.7 billion in net inflows. The legal status of XRP remains intact following a settlement with the SEC finalized in August 2025, which cannot be reopened, ensuring that XRP holders maintain their current legal standing.
As the market awaits a decision from the Federal Reserve regarding interest rates, XRP is closely monitoring critical support levels, particularly the $1.25 mark. Analysts suggest that if XRP can hold above this threshold, it may indicate that the market has already priced in the political fallout from the failed legislation. The Fed's announcement is expected at 2 PM ET, with indications suggesting a high probability of a rate increase.
Source: KLEA News