XRP Price Plummets as Legislative Deadlock and DeFi Collapse Weigh on Token

The cryptocurrency market is experiencing turmoil for Ripple's XRP token, which has seen its price plummet to $1.01 due to a combination of factors.

A legislative deadlock in Washington D.C. has stalled the passage of the 'Digital Asset Market Clarity Act,' a bill that would establish binding rules for cryptocurrencies and provide much-needed clarity for institutional adoption.

XRP is particularly sensitive to its legal classification, and the uncertainty surrounding this bill has weighed heavily on the token's price.

Just hours before the news about the stalled legislation, Ripple secured a provisional CASP license under the European MiCA framework in Luxembourg, allowing it to offer payment services and stablecoin infrastructure across the European Economic Area.

However, this development did little to halt the selling pressure on XRP. The token's price has fallen over 45% since the start of the year and is down more than 72% from its peak in July 2025.