The CLARITY Act cleared the House of Representatives on July 17, 2025, moving the cryptocurrency regulatory framework one step closer to law. The bill has already passed the Senate Banking Committee, and a full Senate floor vote could come this summer. The White House had set a target of July 4 for final passage, though that deadline slipped as the House vote came later.
What the CLARITY Act Does
The legislation aims to clarify how digital assets are classified and regulated, particularly for tokens that may be considered securities or commodities. Its passage through the House marks the furthest the bill has advanced in Congress, after years of debate over crypto oversight. Supporters say it would provide legal certainty for projects like XRP, which has faced regulatory ambiguity.
The White House Timeline
President Biden’s administration had pushed for the CLARITY Act to be enacted by July 4, but the House vote came nearly two weeks later. Now the focus shifts to the Senate, where the bill has cleared the Banking Committee. A floor vote before the August recess is possible, though no date has been set.
What a Model Says About XRP
A price model built on the quantity theory of money — MV=PQ — projects that XRP could reach a minimum of $50 if it captures even a small share of cross-border cash settlement after the CLARITY Act passes. The model assumes $15 trillion in annual volume, with 6 billion XRP serving as the productive monetary base and a velocity of 50. Under a more aggressive “Full Integration” scenario, the same framework suggests XRP prices between $700 and $1,400.
The model also includes a “Structural Base Case” that accounts for supply compression. In that version, derivatives margin requirements lock up 20% of the productive float, reducing the available XRP from 6 billion to about 4.8 billion. That tighter supply would amplify price movement if demand picks up.
These projections remain hypothetical, tied to the CLARITY Act’s passage and actual adoption by financial institutions. No real-world data yet validates the model’s assumptions.
The bill’s fate now rests with the full Senate. A vote could come as early as late summer, but no date has been scheduled.
