Expert: Here’s What XRP Will Become If the CLARITY Act Doesn’t Pass

As uncertainty continues to surround the future of U.S. crypto legislation, a new perspective has emerged on what the outcome could mean for XRP.

XRP Ledger developer Bird has highlighted the view that if the CLARITY Act fails to pass, XRP could strengthen its position as the only major digital asset with established legal clarity in the United States. Supporters believe this distinction could give it a significant advantage over the rest of the market.

Sharing a post from crypto enthusiast unknownDLT, Bird said the argument had not initially occurred to him but described it as “a very clever perspective.”

According to Bird’s post on X, if the CLARITY Act does not pass, XRP could remain the only major digital asset with well-established legal clarity in the United States after years of litigation involving Ripple and the U.S. Securities and Exchange Commission (SEC).

Bird noted that much of the cryptocurrency market is still awaiting regulatory certainty, whereas Ripple and XRP have already endured lengthy legal proceedings. He emphasized that the court ruling and resulting legal precedent already exist, adding that XRP is not a security under the circumstances examined in the case.

unknownDLT Suggests Ripple Lawsuit Created an Unintended Advantage

The post Bird highlighted came from crypto enthusiast unknownDLT, who presented a more direct interpretation of the current regulatory landscape.

According to unknownDLT, if the CLARITY Act is not passed this year, it would become evident that the SEC’s lawsuit against Ripple ultimately left XRP with a regulatory advantage over competing digital assets. The commentator maintained that, regardless of differing opinions, XRP is currently the only digital asset with meaningful regulatory clarity in the United States.

Bird appeared to agree with the broader premise, writing that XRP remains in one of the strongest legal positions across the cryptocurrency industry. However, he also stated that he still expects broader crypto legislation to pass eventually, suggesting that regulatory clarity for the wider market is likely to come over time.

Even if Congress ultimately approves comprehensive digital asset legislation, Bird indicated that XRP’s years of courtroom battles have already placed it in a favorable position compared with projects that have yet to receive comparable legal treatment.

Community Points to Institutional Adoption

An XRP community member, Hanzo questioned whether XRP’s existing legal clarity alone would be enough to encourage banks to begin using the asset or whether financial institutions would continue waiting for broader regulatory certainty before moving forward. Despite recognizing XRP’s current legal position, Hanzo said the CLARITY Act remains important for the cryptocurrency industry as a whole because clearer rules could provide institutions with greater confidence to participate.

The exchange reflects an ongoing debate within the digital asset community. While some believe XRP’s legal standing already provides a competitive advantage, others maintain that comprehensive legislation remains necessary before institutional adoption can accelerate across the broader cryptocurrency market.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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