XRP defends $1 as CLARITY Act stalls and CFTC steps into crypto regulation

XRP traded at around $1.009 on Thursday, keeping the token barely above the $1 level as investors continue to wait for progress on the CLARITY Act.

The crypto market structure bill was expected to advance in the Senate before lawmakers left Washington for their August recess. Instead, the vote was delayed, leaving XRP's regulatory future largely tied to what happens when senators return in September.

The Commodity Futures Trading Commission (CFTC), however, is moving ahead with its own crypto discussions. Its Innovation Advisory Committee is scheduled to meet on August 20, with the agency set to examine how crypto regulation can evolve under its existing authority.

XRP peaked when the House passed the CLARITY Act

One date highlights the relationship between XRP and the CLARITY Act.

XRP reached its record high of $3.65 on July 17, 2025, the same day the U.S. House of Representatives passed the CLARITY Act by a 294-134 vote.

Since then, XRP has fallen roughly 72% from that peak.

The token was down around 2.9% over the past week and 8.7% over the past month, according to the figures in the source material.

The CLARITY Act has made progress since the House vote, but the Senate process has been much slower.

The Senate Banking Committee advanced the bill 15-9 in May, but the legislation still needs 60 votes to clear the Senate's procedural hurdle.

The Senate entered its August recess without holding that vote.

That delay has left XRP traders waiting for another major regulatory catalyst.

XRP remains the sixth-largest cryptocurrency by market value, with a market capitalization of roughly $63.2 billion. However, spot ETF demand has also stalled while larger crypto assets have continued to attract capital.

Why XRP wants a law instead of another ruling

XRP's regulatory status in the United States has largely been shaped by court decisions rather than legislation.

In July 2023, Judge Analisa Torres ruled that XRP sales on public exchanges did not constitute investment contracts. However, the court reached a different conclusion regarding Ripple's direct institutional sales.

Ripple ultimately agreed to pay a $125 million penalty in connection with the case.

That legal history provided XRP with an important degree of clarity, but it did not establish a comprehensive statutory framework for the asset.

The regulatory picture evolved again in March 2026, when the SEC and CFTC issued a joint interpretation dividing crypto assets into five categories, including digital commodities.

The agencies did not specifically classify XRP in that document. Instead, the interpretation pointed toward Congress' efforts to establish a broader market structure framework through legislation. That distinction matters for institutional investors.

A court ruling can be narrowed or challenged. An agency interpretation can also change as regulators change.

A federal law would provide a more durable framework for how digital assets are classified and regulated.

For XRP, that could be particularly important because institutional investors need more than a temporary regulatory interpretation before committing significant capital.

Ripple CEO joins CFTC advisory committee

The CFTC is now preparing to hold its first Innovation Advisory Committee meeting on August 20 in Washington.

The opening session is scheduled for 1:30 p.m. ET under the title “Crypto's Regulatory Evolution: From Uncertainty to Clarity.”

The meeting is expected to examine how regulators can address the rapidly changing crypto market using powers they already have.

Ripple CEO Brad Garlinghouse is a member of the committee, alongside executives from Coinbase, Nasdaq and CME Group.

That gives Ripple a direct seat at the table while the industry waits for Congress to decide the future of crypto market structure legislation.

The CFTC's role could therefore become increasingly important if the CLARITY Act continues to face delays.

The agency can provide regulatory guidance and establish rules within its existing authority, but those measures would not necessarily replace the broader statutory framework that the CLARITY Act is designed to create.

SEC also moves on crypto rules

The CFTC is not the only U.S. regulator working on crypto policy. The SEC is also considering new rules covering crypto offerings and token fundraising.

According to the source material, SEC commissioners are expected to vote Friday on proposed rules for crypto offerings.

A separate tokenization exemption has reportedly been delayed again as negotiators continue discussing that part of the broader regulatory framework.

That means the U.S. crypto industry is currently watching several regulatory tracks at once.

The SEC is working on its own rules, the CFTC is exploring what it can do within its existing authority, and Congress is still trying to advance the CLARITY Act. For XRP, all three developments matter because they could influence how institutions view the asset.

What the CFTC meeting means for XRP

The CFTC's upcoming meeting does not automatically provide XRP with the legal clarity that the CLARITY Act could offer. But it could still be important.

If the agency outlines clearer rules for digital commodities or trading platforms, that could reduce some uncertainty across the crypto market. XRP could benefit from that broader clarity, particularly if institutions become more comfortable participating in the digital-asset market.

The bigger question is whether regulatory agencies can provide enough certainty without Congress passing comprehensive legislation.

Former CFTC Chairman Chris Giancarlo has argued that innovation can continue even without a new crypto law. That creates two competing views.

One side sees agency action as enough to keep the industry moving. The other argues that only legislation can provide the long-term certainty needed for institutional adoption.

For XRP, the difference could be significant.

XRP price remains stuck near $1

XRP's price action reflects that uncertainty.

The token has managed to defend the $1 level, but it has not shown enough momentum to establish a sustained recovery. That is particularly notable because XRP remains far below its previous record high.

Our recent technical analysis also identified $1.01-$1.02 as an important support area, with XRP trading below several major moving averages. This makes the current $1 area especially important.

A sustained break below that zone could reinforce the bearish technical structure, while a recovery above nearby resistance would give buyers a chance to regain control.

The regulatory picture could become an important catalyst either way.

September could be decisive for XRP

The next major test for XRP may come when the Senate returns from recess.

Related: The CLARITY Act still needs enough support to clear the Senate's procedural threshold, with the September 15 vote emerging as a critical test for the bill. The White House has already warned that it could fail without enough Democratic support. White House warns CLARITY Act could fail on September 15 without Democratic support

Meanwhile, the CFTC's August 20 meeting provides a separate opportunity for the industry to push for greater regulatory clarity.

The CFTC has also set August 27 as the deadline for public comments on the advisory committee meeting.

For XRP, the situation is therefore straightforward but unresolved.

Agency action could reduce regulatory uncertainty in the short term, but the CLARITY Act remains the bigger potential catalyst for establishing a long-term legal framework.

Until there is more clarity on the legislation, XRP's ability to move decisively away from the $1 level could remain limited.