- CLARITY Act sections 105 and 110 could strengthen XRP’s legal status and support its treatment as a mature digital commodity.
- XRP rose near $1.54 after the Senate Banking Committee advanced the CLARITY Act, with buyers holding above key short-term averages.
The CLARITY Act has placed XRP back at the center of the U.S. crypto regulation debate after the Senate Banking Committee advanced the bill toward a full Senate vote. The move matters for the wider digital asset market, but XRP carries a different history from most major tokens after years of legal conflict between Ripple and the SEC.
The strongest part of the debate comes from legal certainty. XRP already has a major court ruling behind it after Judge Analisa Torres found that programmatic XRP sales on exchanges did not qualify as securities transactions. Section 105 could give that kind of ruling stronger protection under federal law, limiting the chance that future regulators reopen the same question through enforcement pressure.
That point explains why many XRP supporters view Section 105 as one of the most important parts of the bill. It deals with assets that have already received a non-appealable court judgment on their legal status. For XRP, this would reduce the risk of a new SEC leadership team changing course and treating secondary-market trading as a securities issue again.
🚨 JUST IN: These Are The Exact Sections Of The CLARITY Act Hitting ripple:native The Hardest Today.
Section 105 — Creates a federal legal shield around Judge Torres' ruling that ripple:native's secondary market sales are not securities. Turns a court ruling into permanent… pic.twitter.com/5gOD7JJFlL
— RippleXity (@RippleXity) May 14, 2026
The CLARITY Act bill also reshapes how mature blockchain networks fit inside the U.S. market structure. Section 110 focuses on whether a network has moved beyond early-stage issuer control and can qualify under a clearer digital commodity framework. XRP Ledger has operated for more than a decade, with a long record of settlement activity and a global validator base. That background gives XRP a stronger claim under rules that separate mature digital commodities from assets still tied closely to fundraising activity.
XRP’s Legal and Banking Path Narrows Under Clarity Act
The banking language may carry the largest practical effect for Ripple’s business model. Section 401 addresses how banks, credit unions, and financial holding companies can use digital assets and blockchain technology for activities such as payments, custody, clearing, settlement, lending, and trading. U.S. banks have remained cautious with digital assets, even where customer demand exists. Clearer legal permission would give regulated institutions a cleaner route to review blockchain-based services without relying on uncertain agency guidance.
That does not mean banks would adopt XRP or Ripple products overnight. It means the legal barrier to banks’ use of digital assets could fall. For Ripple, whose infrastructure focuses on settlement, liquidity, and enterprise payments, Section 401 touches on the exact area where the company has built its commercial strategy.
This month, Ripple partnered with Mastercard, J.P. Morgan, and Ondo Finance to complete a 24/7 tokenized U.S. Treasury settlement using the XRP Ledger. The transaction converted Ondo’s OUSG tokenized Treasury product into dollars through Mastercard’s Multi-Token Network and J.P. Morgan’s Kinexys.
Stablecoin rules also connect to Ripple’s U.S. plans. Section 404 draws a line between passive yield and activity-based rewards. Passive interest on stablecoin balances held on exchanges would face restrictions, while rewards tied to payments, transfers, governance, or platform activity could remain available under future rules.
That distinction matters for RLUSD, Ripple’s dollar-backed stablecoin. The product would need to grow inside a framework that separates payment utility from bank-like yield products. As a result, Section 404 could push Ripple’s stablecoin strategy more toward settlement, liquidity, and transaction use rather than passive returns for idle balances.
XRP reacted strongly as traders linked the CLARITY Act progress with the token’s long-running regulatory story. The asset climbed toward session highs near $1.54 after breaking out from the mid-$1.40 range. Buyers pushed the price above the short-term $1.5 resistance, while trading volume rallied over 80% in 24 hours.
At the time of writing, the XRP price was $1.46, up 6% over the past week, while the market cap reached $90.72 billion.
