Key facts
- Ripple's legal status for XRP remains unchanged despite the Senate's failure to pass the CLARITY Act.
- XRP's legal standing is supported by a 2023 federal court ruling and a March 2026 joint SEC-CFTC interpretation.
- The 2023 ruling determined XRP is not a security in secondary market sales.
- The SEC and CFTC jointly classified XRP as a digital commodity in March 2026.
- XRP options volume surged 350% before the vote.
- XRP dropped approximately 7.3% following the vote.
Ripple's Chief Legal Officer, Stuart Alderoty, asserted that XRP's legal status remains secure despite the Senate's failure to pass the CLARITY Act. The bill's cloture vote collapsed with a 49-50 result. Alderoty emphasized that XRP's classification does not depend on this legislation, pointing to two key legal foundations: a 2023 federal court ruling by Judge Analisa Torres that declared XRP not a security in secondary market sales, and a March 2026 joint interpretation by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) that designated XRP as a digital commodity. He highlighted that a federal court judgment is more durable than an agency interpretation, which can be altered by future commissions. Ripple CEO reportedly blamed Democratic politics for the bill's defeat. The company and the SEC had jointly dismissed appeals in August 2025, effectively closing that litigation chapter. With legislative action stalled, attention now shifts to regulatory agencies, with SEC Chair Paul Atkins and CFTC Chair Brian Selig expected to lead efforts in establishing clear rules for trading, custody, and digital asset products. The SEC and CFTC are currently seeking public comment on a harmonized framework for XRP, Bitcoin, and Ethereum futures. The market had already priced in the bill's potential failure, with XRP options volume experiencing a significant surge beforehand. Following the vote, XRP saw a price drop of approximately 7.3%, with Ether and Bitcoin also declining, leading to substantial liquidations across the crypto market.