XRP Slides More Than 8% After Senate Blocks Vote on CLARITY Crypto Bill

XRP sank more than 8% after the U.S. Senate blocked a major crypto market-structure bill, cutting off what traders had viewed as a near-term path toward a federal framework. The Senate vote was 49"50 and failed to invoke cloture on a motion to proceed to H.R. 3633. CryptoSlate data showed XRP dropping to as low as $1.27 before rebounding to about $1.29 as of press time. The token was down from roughly $1.42 on Sept. 14. The decline came alongside broader weakness in major cryptocurrencies and was accompanied by liquidations of leveraged long positions. Ripple CEO Brad Garlinghouse said the outcome "stings," but argued it does not change Ripple's commercial trajectory, citing demand from both traditional finance and the broader digital-asset sector. He said Ripple's momentum, global footprint, and customer base remain unchanged. Ripple Chief Legal Officer Stuart Alderoty said XRP's regulatory standing remains intact despite the Senate setback, pointing to joint signals from regulators in March. At that time, the Securities and Exchange Commission issued a Commission-level interpretation outlining how federal securities laws apply to several categories of crypto assets, while the Commodity Futures Trading Commission said it would administer the Commodity Exchange Act consistently with that framework. Under that March approach, XRP was listed among 18 assets identified as digital commodities based on their characteristics, terms and functions at the time. Ripple said that status remains in effect following the failed Senate vote and gives the company an advantage as much of the industry operates without a comprehensive statutory market-structure regime. Ripple noted the March interpretation relies on existing law and leaves room for the SEC to refine or revise its views. It also preserves transaction-specific analysis under the Howey test: an asset that is not itself a security can still be offered or sold as part of an investment contract subject to securities laws. Ripple said it expects SEC Chairman Paul Atkins and CFTC Chairman Mike Selig to take larger roles in shaping crypto rules and plans to stay engaged with both agencies. The company said it expects XRP's digital-commodity treatment to remain in place through future rulemaking, including potential clarifications on how current statutes apply to trading, custody and other crypto activities. A broader division of authority between the SEC and CFTC would still require congressional action. Ripple added that demand remains strong across payments, stablecoins and institutional markets, and said it will continue expanding globally while pushing for clearer U.S. rules. U.S. spot XRP exchange-traded funds had drawn about $1.71 billion in cumulative net inflows through Sept. 14, with roughly $1.58 billion in net assets. XRP ranked behind only Bitcoin and ETH among major U.S. single-asset spot crypto ETF categories tracked in the same data set, and ahead of Solana's roughly $1.37 billion in cumulative inflows. The next questions are whether investor demand holds after the Senate setback and whether regulators can translate the March interpretation into a more durable regulatory framework.