A significant shift in the United States’ approach to cryptocurrency regulation could be on the horizon. Ripple CEO Brad Garlinghouse has expressed strong confidence, estimating a 90% probability that the Digital Asset Market Clarity Act (H.R. 3633) will be passed into law by the end of April 2026. For XRP, this legislation represents far more than a symbolic victory; it promises to establish definitive rules, potentially removing a major obstacle that has deterred institutional investment.
Market Sentiment Cautious Despite Positive Developments
The current market mood remains defensive, even as the fundamental narrative for XRP appears to strengthen. The asset continues to face price pressure, trading at $1.37, which reflects a decline of 4.35%. Analysts note a disconnect between this price action and underlying indicators. Recent brief upward momentum followed Garlinghouse’s appointment to the CFTC’s Innovation Advisory Committee, but gains were quickly taken as the broader crypto market stayed fragile.
Observers point to sustained positive sentiment on social channels and consistent weekly inflows into XRP-focused spot ETFs. The apparent reluctance of the price to reflect these factors more robustly is attributed to investors awaiting concrete catalysts. Two primary events are in focus: the pending SEC decision regarding a potential spot XRP ETF and the legislative progress of the Clarity Act, with its late April 2026 deadline.
The Clarity Act: Defining Regulatory Boundaries
At its core, the proposed Digital Asset Market Clarity Act aims to clearly delineate regulatory authority between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This jurisdictional gray area has long created uncertainty for industry participants unsure of which rules apply to their activities.
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The act holds particular significance for XRP. A federal law providing a clearer definition for the status of digital assets would effectively reinforce a prior court ruling which found that XRP is not a security when sold to retail investors. Garlinghouse cites renewed political momentum as the basis for his optimism, referencing a resolved legislative “logjam” in Washington. The White House has a negotiation window until March 1 to finalize terms. Additional support is seen from “Project Crypto,” a collaborative initiative between the SEC and CFTC designed to coordinate oversight of digital markets. For many large investors who have hesitated due to legal ambiguity, such a law could provide the final piece of the regulatory puzzle.
Ecosystem Growth and Real-World Utility Expand Globally
As regulatory discussions advance in the U.S., the XRP ecosystem continues to evolve with a focus on tangible applications beyond American borders. In Japan, SBI Holdings has issued a tokenized bond valued at 10 billion yen (approximately $64.5 million USD), which distributes rewards to holders in XRP. Secondary trading for this instrument is scheduled to commence on March 25, 2026, offering a practical case study for how regulated demand for XRP can be generated.
This development aligns with a broader trend highlighted by Ripple: increasing institutional use of the XRP Ledger (XRPL) for tokenizing real-world assets. Earlier this month, a partnership was announced between Aviva Investors and Ripple to facilitate the tokenization of funds on the XRPL.
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