CLARITY Act's Fate Decides XRP Price: Senate Must Pass Bill Before August

The CLARITY Act is one vote away from becoming federal law, which could have a significant impact on the price of XRP. The bill would settle XRP's legal status as a commodity and hand most crypto oversight to the CFTC.

However, time is running out for the Senate to pass the bill before their August recess. If it doesn't clear by then, it may stall for possibly years, according to Cynthia Lummis and Bernie Moreno, two of crypto's biggest backers in Congress.

The hold-up is due to a provision in Section 604 that protects software developers and infrastructure builders who never hold anyone's funds from being regulated like banks or exchanges. Law enforcement groups have raised concerns about the broad language of this clause, while developers argue it's necessary for building on blockchain in the US.

If the bill passes with the current Section 604 language, analysts predict XRP could re-rate into the $1.60 to $2.20 range by Q4. However, if talks stall and no vote happens before August, the price may drift back towards its lows for the year, potentially reaching $0.80 to $1.00.