XRP and Cardano (ADA) are both trading lower as the U.S. Senate shelves the CLARITY Act, a bill that would have provided regulatory clarity for certain digital assets. The move dims the odds of near-term legislative progress for the crypto sector.
Why the CLARITY Act mattered
The CLARITY Act was seen as a potential step toward defining whether tokens like XRP and ADA are securities or commodities. That classification matters — it determines which federal agency oversees them and what rules they must follow. With the bill now sidelined, the regulatory fog persists, and investors are pricing in a lower probability of a clear framework emerging soon.
Senate's legislative priorities
Lawmakers in the Senate decided to shelve the CLARITY Act to focus on other bills they consider more urgent. The chamber's calendar is crowded, and crypto legislation didn't make the cut for the current session. The decision wasn't a formal rejection — the bill hasn't been killed — but it's been pushed to the back burner.
Limited window before recess
The Senate has a narrow window to vote on the CLARITY Act before the August recess. If it doesn't get floor time in the coming weeks, the bill will likely have to be reintroduced in the next session. That would reset the legislative clock and further delay any potential clarity for the market.
For now, XRP and ADA holders are left watching the calendar. The next few weeks will tell whether the Senate can squeeze in a vote — or whether the bill stalls until fall.
