Market Strategist: What the CLARITY Act Means for XRP

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With the Digital Asset Market Clarity Act of 2025 advancing in the U.S. legislative process after it was placed on the Senate Legislative Calendar in June, attention turned to what the proposed legislation could mean for the cryptocurrency industry.

Among the digital assets at the center of those discussions is XRP, whose regulatory status has remained a key topic following years of legal uncertainty.

Financial expert Levi weighed in on the bill’s potential impact in a post on X, stating that the Clarity Act could permanently establish XRP’s classification under federal law. He accompanied the post with a video explaining why he believes the legislation could significantly strengthen XRP’s legal standing in the United States.

Levi Says the Bill Would End Years of Regulatory Uncertainty

In the video, Levi began by describing the long-standing disagreement between U.S. regulators over digital assets. He noted that for years, uncertainty existed because the Securities and Exchange Commission (SEC) viewed many cryptocurrencies as securities, while the Commodity Futures Trading Commission (CFTC) treated others as commodities.

Levi stated that this lack of clarity contributed to the SEC’s legal action against Ripple, creating years of uncertainty for XRP and the broader digital asset market.

He explained that the Clarity Act is designed to resolve that issue by establishing clear categories for digital assets. Under the proposed framework, securities would remain under SEC oversight, digital commodities would fall under the CFTC, and stablecoins would operate under a separate regulatory structure.

XRP’s Classification Could Become Permanent

Levi pointed to developments earlier this year, stating that both the SEC and the CFTC had already classified XRP as a digital commodity rather than a security. He described that determination as a significant victory for XRP holders but stressed that it remains a regulatory decision rather than federal law.

According to Levi, because the classification is based on regulatory action, a future administration or a new SEC leadership team could potentially reverse it. He argued that the Clarity Act would change that by writing XRP’s classification into federal law, making it far more difficult to alter.

Levi maintained that once the legislation becomes law, the SEC would no longer be able to pursue XRP as a security without Congress passing entirely new legislation. In his view, this would provide the legal certainty that many market participants have sought for years.

He also noted that the Senate has until August 7 to consider the legislation, adding that the timeline is important for investors monitoring regulatory developments. Levi concluded by inviting users interested in his market approach to comment “XRP” on his post to receive details about how he is positioning his trades.

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