SBI Holdings CEO Yoshitaka Kitao pointed to the upcoming U.S. CLARITY Act vote as the single most important factor for Ripple and XRP's market performance. He also linked the broader crypto market's recent slump — including a $1.77 billion crash — to liquidity being sucked out by technology initial public offerings.
Why the CLARITY Act matters to XRP
Kitao identified the CLARITY Act as the ultimate catalyst for Ripple and XRP. The bill, if passed, would provide clear legal framework for digital assets in the United States, potentially resolving years of regulatory uncertainty that have weighed on XRP. Kitao argued that once the vote happens, the market will finally have a directional signal for the token. The timing is critical: XRP has been caught in a legal gray area since the SEC's case against Ripple, and a clear regulatory classification could either boost it or leave it struggling.
Tech IPOs drained liquidity
The SBI chief didn't stop at regulatory politics. He said the recent crypto downturn wasn't just about crypto-native issues — it was about where money is flowing. Tech IPOs, especially high-profile listings this spring, have been drawing capital away from digital assets. Kitao described this as a liquidity drain that amplified the sell-off. The market lost $1.77 billion in a single crash event that he tied directly to this shift. It's a reminder that crypto doesn't trade in a vacuum; when big tech stocks go public, the money has to come from somewhere.
What happens next
The CLARITY Act vote is pending in the U.S. Congress with no set date yet. Kitao's remarks put the pressure back on lawmakers. For Ripple holders and XRP traders, the wait is now everything. Until the vote lands, expect the token to track the uncertainty. The IPO pipeline isn't slowing down either, so liquidity could stay tight for a while longer.
