XRP Could Surge if U.S. CLARITY Act Passes, Top Trader Says
A crypto commentator warned that XRP could rally strongly if the U.S. Senate approves the CLARITY Act, a crypto market-structure bill scheduled for a delayed vote on January 29, 2026. The CLARITY Act would assign token oversight between the SEC and CFTC, classifying security-like tokens under the SEC and commodities — including XRP — under the CFTC. The bill also sets rules for stablecoins, reserves, DeFi protocols and reporting requirements, aiming to reduce regulatory uncertainty. XRP is highlighted as well positioned to benefit due to existing adoption and compliance readiness. Coinbase has withdrawn support for the bill citing unacceptable provisions, while Ripple CEO Brad Garlinghouse has voiced support. Traders are watching the vote closely for potential price action in XRP; content includes a standard disclaimer that it is not financial advice.
Bullish
The news is categorized as bullish because the CLARITY Act would reduce regulatory uncertainty by clearly assigning oversight of commodities (including XRP) to the CFTC and securities to the SEC. Regulatory clarity historically supports crypto price appreciation by lowering legal risk and encouraging institutional participation and on‑ramp activity. Examples: positive regulatory developments (court wins, clearer guidance) have previously led to rapid rallies in affected tokens, while uncertainty or crackdowns have caused sharp selloffs. Short‑term: heightened volatility is likely around the Senate vote and immediate passage — traders can expect rapid price spikes or squeezes as positions repriced and flows enter XRP. Market makers and liquidity providers may widen spreads pre-vote, then tighten if passage is confirmed. Long‑term: if the bill becomes law and enforcement boundaries hold, XRP could see increased listing, institutional custody, and onboarding from banks and payment firms, supporting higher baseline demand and lower risk premium. Risks: the bill may be amended, face legal challenges, or fail to pass, and major industry pushback (e.g., Coinbase withdrawing support) could dampen effects. Overall, passage would be a structural positive; uncertainty leading into the vote makes short‑term moves unpredictable but biased toward bullish on a successful outcome.