Key facts
- Ripple's stablecoin, RLUSD, aims to capture a $13 trillion corporate treasury market.
- The CLARITY Act draft defines 'digital commodity' and includes provisions for 'network tokens' and 'ancillary assets'.
- Under the draft, XRP would be treated as a crypto commodity in secondary markets, regardless of Ripple's holdings.
- The proposed legislation states that the sale or distribution of a network token before the law takes effect shall not be treated as a security transaction under certain federal laws.
- The draft also allows network tokens to be listed on digital commodity exchanges.
- Coinbase CEO Brian Armstrong views the CLARITY Act as nearing completion.
Ripple's stablecoin, RLUSD, is being positioned to target a significant portion of the corporate treasury market, with estimates suggesting access to approximately $13 trillion in annual transactions. This strategic push is being highlighted by Tony Edward, host of the Thinking Crypto podcast, who noted that Ripple's acquisition of GTreasury and ongoing developments within the XRP Ledger are key to this expansion.
Edward also pointed to Clearpool Finance's proposal to migrate to the XRP Ledger, citing new lending standards for institutional credit products. Ripple has reportedly committed to investing in yield products for XRP and RLUSD, though Edward remains bullish on XRP itself.
The increased focus on RLUSD coincides with a critical week for U.S. cryptocurrency legislation. The Senate is scheduled to vote on the CLARITY Act on September 15. Discussions surrounding the bill are ongoing, with White House crypto director Patrick Whitt and billionaire investor Mike Novogratz expressing optimism about its progress. Edward suggested that the White House has an opportunity to introduce a new ethics agreement before the vote.
Coinbase CEO Brian Armstrong also views the CLARITY Act as being close to passage. The bill's approval is anticipated to lay the groundwork for broader regulation of the U.S. crypto sector and potentially improve market sentiment, with Edward predicting a significant rally for Bitcoin and other cryptocurrencies.
A new draft of the CLARITY Act, released by Senate Republicans, includes language that could impact the regulatory status of XRP and other network tokens in the United States. Pro-XRP lawyer Bill Morgan noted that under the draft, XRP would be considered a crypto commodity in secondary markets, irrespective of how much XRP Ripple holds. The legislation defines 'digital commodity' and includes provisions for 'network tokens' and 'ancillary assets,' stating that the sale or distribution of a network token before the law takes effect shall not be treated as a security transaction under certain federal securities laws. The draft also permits network tokens to be listed on digital commodity exchanges.