The Senate has dropped the Clarity Act, a bill that aimed to bring regulatory certainty to digital assets. The move comes as a Federal Reserve interest-rate decision looms, and XRP is already sliding. The cryptocurrency's charts are running out of support zones, leaving traders to weigh two sources of pressure.
Why the Clarity Act mattered
The Clarity Act was designed to define which digital assets are securities and which are commodities. Its failure in the Senate means that regulatory ambiguity persists. For XRP, which has been at the center of a long-running legal battle with the SEC over its status, the lack of clear rules adds another layer of uncertainty. Without the act, the path to a settled regulatory framework remains unclear.
The Fed's shadow
Beyond Capitol Hill, the Federal Reserve is set to announce its next rate decision. Markets widely expect the central bank to hold rates steady, but the accompanying statement and economic projections will be scrutinized for hints about future moves. Higher-for-longer interest rates tend to weigh on risk assets like cryptocurrencies. XRP, already under pressure, is sensitive to any signal that liquidity will remain tight.
XRP's technical picture
Price charts show XRP testing levels that have historically acted as support. Those zones are thinning, meaning there is less buying interest to absorb selling pressure. The slide has accelerated in recent days, and traders are watching to see whether the next major support level holds. If it breaks, the next floor could be significantly lower.
The combination of a failed regulatory bill and an uncertain Fed outlook has left XRP in a precarious spot. The next concrete event is the Fed's rate announcement later this week. Until then, the charts offer little comfort.
