Ripple's Chief Legal Officer Stuart Alderoty said XRP's legal status remains unchanged following the Senate's failure to pass the CLARITY Act in a 49-50 cloture vote.
Alderoty pointed to two legal foundations that exist independent of legislation. The first is a 2023 federal court ruling by Judge Analisa Torres that determined XRP is not a security in programmatic and secondary-market sales. The second is a March 2026 joint interpretation by the SEC and CFTC that formally classified XRP as a digital commodity alongside Bitcoin, Ethereum, Solana, and Cardano.
Alderoty emphasized that a federal court judgment cannot be overturned by future regulatory action, whereas agency interpretations can be reversed by successor commissions. This distinction underscored why the court ruling provides a more durable legal foundation than legislation alone.
Market Impact and Next Steps
Following the vote, XRP declined approximately 7.3%, while Ethereum fell 5.2% and Bitcoin shed 3.7%. The broader market experienced roughly $670 million in 24-hour liquidations.
Alderoty indicated that regulatory agencies will be the next focal point for the industry. He noted that SEC Chair Paul Atkins and CFTC Chair Brian Selig are expected to advance rulemaking on trading, custody, and digital asset products. The SEC and CFTC are currently seeking public comment on a harmonized framework for Bitcoin, Ethereum, and XRP futures.
U.S. spot XRP exchange-traded funds have received $1.7 billion in net inflows, a position that rests on the legal premise that XRP is a non-security commodity-class asset.
In August 2025, Ripple and the SEC jointly dismissed appeals related to litigation that began in December 2020, closing that legal chapter.
