CLARITY Act Could Reclassify XRP and Top Altcoins with BTC/ETH if Included in ETFs by 2026
A draft Senate CLARITY Act would treat tokens included in a regulated exchange-traded product (ETP/ETF) by January 1, 2026, as non-ancillary commodities rather than securities. The proposal explicitly targets tokens such as XRP, SOL, DOGE, LTC, HBAR and LINK, putting them in the same regulatory bucket as Bitcoin (and, by extension in related coverage, Ethereum) once they meet the ETF condition. The change follows reduced regulatory uncertainty after the Ripple v. SEC decision and is intended to move US policy from enforcement-driven actions toward clearer rule-making, protecting developers and easing compliance for exchanges, funds and institutions. Markets showed muted immediate price reaction because the text is a draft and must clear committee and Senate votes; thus near-term price moves are uncertain. For traders, the provision would lower long-term legal risk for qualifying tokens, potentially boosting institutional inflows, liquidity and market legitimacy if enacted — but timelines, possible amendments and political hurdles mean this is not a guaranteed or immediate price catalyst.
Bullish
The draft CLARITY Act reduces legal/regulatory risk for tokens that are included in regulated ETFs by Jan 1, 2026. Lower legal risk and clearer classification typically encourage institutional investors and funds to allocate capital to assets previously held back by compliance concerns, which supports higher inflows and improved liquidity over the medium to long term. The named tokens (XRP, SOL, DOGE, LTC, HBAR, LINK) would gain parity with BTC/ETH in regulatory treatment once listed, enhancing market legitimacy. However, immediate price impact is likely muted because the provision is still a draft, needs committee and Senate approval, and could be amended or delayed. Short-term traders should not expect an immediate breakout solely from the text; volatility could rise on legislative milestones or leaks. Overall, the net effect on the cited tokens is bullish in the medium-to-long term due to prospective institutional demand and reduced legal overhang, but contingent on passage and final language.