The U.S. Senate has opened the first procedural stage of voting on the Clarity Act, the market-structure legislation that would classify which digital assets are securities and which are commodities. The move gives the bill a path to a floor vote in September, but the delay is already exacting a toll on the token most dependent on regulatory clarity: XRP.

The Senate left Washington for recess without taking up a full floor vote. While the procedural step keeps the legislation alive, it means the industry will wait at least another month for the legal framework many consider essential for institutional adoption.

What the Clarity Act Would Do

In previously reported drafts, the Clarity Act would reclassify XRP, Solana, and Dogecoin as non-securities, placing them under the regulatory jurisdiction of the Commodity Futures Trading Commission rather than the Securities and Exchange Commission.

For Ripple, whose co-founder created XRP, that represents the culmination of years of legal battles. Ripple agreed to pay $50 million to settle its cross-appeal with the SEC, but a federal statute would settle the question definitively — for every exchange, custodian, and regulator at once.

Without the law, XRP remains in a regulatory gray zone. And the market is pricing it accordingly.

XRP: The Lone Red Coin

While every other major cryptocurrency posted gains over the past 24 hours — Dogecoin led the top 10 with a 1.38% advance — XRP dropped 2.05%, the only major token to close in the red. Over the past week, XRP has fallen 3%, making it the worst performer among large-cap assets.

XRP trades at $1.028, with a market capitalization of approximately $64 billion. The token has been in a grinding downtrend since reaching $3 in 2025.

Technical Breakdown

XRP's 50-day EMA has crossed below its 200-day EMA in a confirmed death cross. The current price sits below both averages, meaning no moving average is providing support beneath the token.

The Relative Strength Index reads 35.9 — bearish, but with room for further downside before reaching oversold territory. The Squeeze Momentum indicator shows volatility is expanding rather than compressing, meaning there is no coiled-spring setup suggesting an imminent reversal.

The psychological $1.00 level is the critical support. Below it, the next target is $0.9153, the lowest print since early 2024.

Prediction Markets Cautiously Optimistic

Despite the bearish price action, prediction market traders on Myriad are pricing in 77% odds that XRP remains above $1.00 through the weekend. That suggests traders believe the psychological floor will hold in the short term, even if the broader trend remains negative.

A Clarity Act vote in September could ignite a relief rally. But after months of procedural delays, XRP holders have learned not to count on a timeline in Washington.

Industry-Wide Stakes

The Clarity Act's implications extend well beyond XRP. The legislation would establish the first comprehensive federal framework for digital asset classification in the United States, determining which regulator oversees which tokens and providing the clarity that institutional investors, exchanges, and developers have requested for years.

Until then, the market continues to trade on news and sentiment rather than legal certainty. For XRP, that means more time in limbo.