The crypto market is keenly observing the evolving political scenario surrounding the CLARITY Act, especially as the U.S. Senate prepares for a crucial procedural vote scheduled for September 15. Former President Donald Trump’s recent endorsement of a significant portion of the bipartisan ethics agreement marks a pivotal moment, potentially easing some political roadblocks impeding the bill’s progress.
Progress in Bipartisan Ethics Agreement
Reports indicate Trump has largely agreed to the bipartisan ethics deal brokered by Republican Senator Thom Tillis and Democrat Senator Ruben Gallego, endorsing around 80% of it. This agreement introduces stricter limitations on government officials’ involvement in crypto assets and outlines enforcement roles for state attorneys general in cooperation with federal agencies.
The CLARITY Act aims to clarify the regulatory framework governing the crypto market in the U.S., with recent negotiations intensely focusing on ethical oversight, consumer protection, and enforcement authorities. Ripple‘s Chief Legal Officer, Stuart Alderoty, views the upcoming procedural vote on September 15 as a critical juncture for determining the bill’s advancement in Congress.
Is Uncertainty Looming Before the Vote?
The procedural motion needs 60 votes to progress, making the narrowing of ethical disagreements significant yet not a complete solution for the bill’s passage. Concerns persist among Democrats regarding illegal financing, stablecoin rewards, and consumer safeguards. Additionally, some Republicans remain wary of specific provisions.
In August, Gallego highlighted repeated submissions of ethical proposals to the White House with minimal feedback. The July compromise between Tillis and Gallego suggested more stringent rules on crypto assets, blind trust practices, and enforcement powers for public officials. Nevertheless, the finalized ethical text remained absent from the 630-page CLARITY Act draft dated September 10.
Trump’s recent concession does not assure the bill’s passage but significantly narrows one of the toughest political disagreements before the Senate vote.
XRP Price Shows Limited Reaction as ETF Investments Continue
Despite the political developments, XRP prices remained relatively stable, trading around $1.36. Over the last 24 hours, the price fluctuated between $1.32 and $1.43.
In contrast, U.S. spot XRP ETFs continued to see inflows, attracting a total of $18.98 million between September 8 and 10. Of this, $12.29 million was recorded on September 9, and $5.14 million on September 10. During the same period, Bitcoin funds experienced significant outflows.
- U.S. spot XRP ETF inflow totaled $18.98 million from September 8-10.
- Single-day XRP ETF inflow on September 9 reached $12.29 million.
- September 10 saw an additional $5.14 million flow into XRP ETFs.
Institutional investors such as Goldman Sachs, Jane Street, and Millennium have been major players in XRP ETFs. However, the upcoming Senate decision on September 15 won’t directly classify XRP as either a security or a commodity. Even an affirmative vote won’t prompt the immediate enactment of the CLARITY Act.
