XRP rose sharply after U.S. regulators moved a key crypto market-structure bill forward, fueling expectations that clearer rules could pave the way for deeper institutional involvement.
The token gained 5% after the Senate Banking Committee advanced the Digital Asset Market Clarity Act in a 15–9 vote on Thursday, pushing the legislation closer to a full Senate vote and reviving momentum around long-awaited regulatory reform.
XRP climbed above $1.50 following the development, posting a 5% gain over 24 hours and 7.6% on the week. The rally outperformed bitcoin and ether, which have risen less than 3% over the same period.
The reaction reflects XRP’s unique exposure to regulatory shifts. Since the SEC’s lawsuit against Ripple in 2020, the token has been heavily influenced by legal uncertainty, including exchange delistings and cautious institutional participation. While a 2023 court ruling clarified that secondary-market XRP trading is not classified as securities activity, investors have continued to look for a more definitive legislative framework.
The CLARITY Act seeks to establish that foundation by outlining rules for digital asset custody, trading, market making, and ETF integration—key components for institutional adoption.
Still, the bill faces a complex path before becoming law. It must be reconciled with a separate version from the Senate Agriculture Committee, pass both chambers of Congress, and be signed by the president. While Senator Cynthia Lummis has indicated progress toward consensus, opposition from Senator Elizabeth Warren suggests further debate ahead. The Memorial Day recess adds a near-term timeline for negotiations.
Beyond policy developments, XRP’s outlook is increasingly supported by growth in its underlying ecosystem.
The XRP Ledger has gained traction as a platform for tokenized assets, with more than $3 billion in real-world assets now issued on the network, positioning it as a leading option outside Ethereum for institutional tokenization.
Recent pilots underscore its capabilities. A joint initiative involving Ripple, JPMorgan, Mastercard, and Ondo Finance successfully processed a tokenized U.S. Treasury redemption in under five seconds, demonstrating the network’s ability to connect blockchain infrastructure with traditional financial systems.
Meanwhile, decentralized finance activity tied to XRP continues to expand, with over $560 million in total value locked across platforms such as Flare and Doppler Finance.
Institutional demand is also reflected in fund flows. U.S.-listed spot XRP ETFs recorded $25.8 million in net inflows earlier this week—their strongest daily intake since January—bringing total inflows to $1.35 billion. The momentum follows Ripple’s $200 million debt raise for its Prime brokerage arm and continued progress in tokenization initiatives.
Despite the recent gains, XRP remains below its 2025 highs, with the $1.50 level acting as a key resistance zone.
While the committee vote has provided a near-term boost, the broader narrative remains intact: a sustained rally in XRP will likely depend on full regulatory clarity emerging from Congress.
