Key facts
- Crypto commentator Kenny Nguyen believes Ripple, XRP, and XRP Ledger meet the criteria of the proposed U.S. CLARITY Act.
- The CLARITY Act seeks to establish a regulatory regime for cryptocurrencies, defining a 'mature blockchain'.
- Key criteria for a mature blockchain include substantial value derived from network use, no user restriction or privilege, and decentralized ownership.
- XRP Ledger is described as an open-source, permissionless blockchain operated by a distributed validator network.
- Standard Chartered estimates that clearer XRP regulations could lead to $4 billion to $8 billion in XRP ETF inflows.
Crypto commentator Kenny Nguyen has asserted that Ripple, XRP, and the XRP Ledger (XRPL) already comply with the provisions of the proposed U.S. CLARITY Act, a bill aimed at establishing a regulatory framework for cryptocurrencies that is nearing a Senate vote.
Nguyen shared on X that Ripple, XRPL, and XRP meet the legislation's criteria, citing a section defining a 'mature blockchain.' According to the CLARITY Act proposal, the value of a digital commodity linked to such a network should be substantially based on its use and operation, without restricting or privileging users. Furthermore, a mature blockchain should not be controlled by a single entity or group under common control, and ownership should not be overly concentrated.
XRP supporters have long argued that Ripple's involvement in developing enterprise products on the XRP Ledger does not equate to direct control over the ledger itself. XRPL operates as an open-source, permissionless blockchain maintained by a distributed validator network, functioning independently of any central authority. The utility of XRP is seen as stemming from network activity, supporting its interdependence with XRPL without direct control by Ripple, which Nguyen suggests aligns with the CLARITY Act's requirements.
This potential regulatory clarity has also attracted institutional attention. Standard Chartered recently predicted that clearer regulations for XRP could lead to $4 billion to $8 billion in inflows into spot XRP Exchange-Traded Funds (ETFs). The bank noted that such clarity could encourage large investors like pension funds and asset managers to enter the market. Concurrently, Jake Claver, Chairman of Digital Ascension Group, anticipates that BlackRock will soon file for an XRP ETF.