Senate Republicans released a revised version of the CLARITY Act just hours before Tuesday’s cloture vote. The bill has grown from about 616 pages to 635 pages, with one new section defining an “ancillary asset” as a type of network token whose value is linked to the efforts of its originator or related parties.
The new language could have major implications for XRP. Under the revised draft, XRP would be treated as a digital commodity in secondary markets regardless of how much XRP Ripple holds. The bill also says that nothing in the legislation would cause an ancillary asset to stop being a network token.
This is important because XRP has faced years of debate over whether its legal status should depend on how it is sold and how much of the supply Ripple controls.
In 2023, a U.S. district court ruled that Ripple’s programmatic XRP sales on exchanges were not securities transactions, while certain institutional sales under contracts were treated differently. The revised CLARITY language appears designed to create a clearer statutory framework for assets such as XRP instead of leaving their classification open to repeated legal challenges.
One of the most important parts of the new language concerns the amount of tokens held by the originator. Ripple’s large XRP holdings have been used as an argument against treating the asset as a commodity. The revised draft appears to remove that argument by saying the classification would apply regardless of how much the originator owns.
That could give XRP greater legal certainty in secondary markets and potentially make it easier for banks, asset managers and custodians to work with the asset. However, the proposed language would not settle every issue surrounding Ripple. It would not automatically change the legal treatment of Ripple’s own sales or create all of the rules needed for exchanges and custodians.
The timing of the revision is also important. The Senate needs 60 votes to move forward with the bill, while Republicans hold 53 seats. At least some Democratic support is therefore needed.
The latest changes reportedly came alongside concessions involving conflict-of-interest rules and state-level enforcement powers. Democrats had previously objected to language that placed enforcement responsibility solely with the Justice Department.
Giving state attorneys general enforcement authority would provide another path for enforcement and could help bring additional Democratic votes. At the same time, the new digital-asset language gives the cryptocurrency industry something significant to support.
However, it is still unclear who specifically requested the ancillary asset language. Legislative text can involve committee staff, lawmakers, agencies and outside advisers, so the exact source of a new provision is not always immediately known.
The fact that the language could directly affect XRP is likely to attract attention, especially because Ripple has been an important financial supporter of the crypto industry’s political efforts. That does not prove the company requested or purchased the provision. The amendment record and committee documents will provide better evidence of how the language was created.
If the provision eventually becomes law, XRP’s classification in secondary markets could move from being based largely on a 2023 court ruling to being supported directly by federal law. That would be a much stronger legal foundation.
Still, XRP holders should not treat Tuesday’s cloture vote as a final victory. Cloture only determines whether the Senate can begin debating the bill. It does not pass the legislation.
After that, senators would still have to work through amendments, another procedural vote would be possible, and the House would need to agree to the final version. The bill could also change before reaching the final stage.
This means the newly added XRP-related language could still be removed. Because it was added so late and is highly specific, it could become a target during negotiations.
The wider impact of the definition also deserves attention. The language does not mention only XRP. A network token whose value depends on the efforts of an originator could describe many other major crypto projects.
If the definition is interpreted broadly, it could affect a large part of the crypto market and represent a major change in how digital assets are classified in the United States. If it is intended to be narrower, other sections of the 635-page bill may contain limits that are not obvious from the definition alone.
For XRP holders, the most important thing to watch is whether the ancillary asset language survives the amendment process. The Senate roll call will also show which Democrats support moving the bill forward and whether there is enough support for the next stages.
XRP has already reacted strongly to earlier CLARITY Act developments this year. It rallied after the Senate Banking Committee advanced the bill in May and again after progress on the ethics issue in July, but both moves later faded.
The reason is simple: neither event actually changed XRP’s legal status.
The same is true of Tuesday’s cloture vote. Even if the vote succeeds, XRP would not immediately receive a new legal classification. The bigger event would be the final passage and enactment of the legislation.
Until then, the new definition is significant, but it remains part of a bill that can still be changed.
