Ripple CLO Reaffirms XRP Not a Security Amid US Clarity Act Failure

Ripple has reiterated that XRP is not a security following the U.S. Senate's failure to advance the 'Clarity Act,' a cryptocurrency regulation bill. The move comes after the Senate rejected a procedural vote on the legislation with a 49-50 split, falling short of the required 60 votes for passage.

Stuart Alderoti, Ripple's Chief Legal Officer (CLO), addressed the XRP community shortly after the vote, emphasizing that Ripple and XRP stand on 'settled legal ground.' He referenced a 2023 federal court ruling that established XRP is not a security, as well as a March joint interpretation by the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), which classified XRP as a digital commodity.

Senate Democrats did not support the procedural vote, with several prominent members including Kirsten Gillibrand, Mark Warner, Cory Booker, Raphael Warnock, Ruben Gallego, Angela Alsobrooks, Catherine Cortez Masto, Lisa Blunt Rochester, and John Fetterman opposing it. Republicans also joined in opposition, with Susan Collins, Josh Hawley, and Jerry Moran casting 'no' votes.

Ripple CEO Brad Galtengaus expressed disappointment over the outcome, calling it a 'painful result,' but stated that Ripple had invested all efforts to pass the Clarity Act. He acknowledged industry-wide support for the bill and suggested further review of why the legislation failed, pointing to Democratic political influence as a factor.

Galtengaus also noted that with legislative progress stalled, Ripple will focus on regulatory rulemaking by the SEC and CFTC. He predicted these agencies would continue developing rules to fill the legislative gap, stating that Ripple intends to actively participate in this process under new leadership at both agencies.

While the Senate's rejection was seen as a setback for the crypto industry, Ripple used the moment to stress that XRP's legal classification and regulatory standing were already established. Market attention is now expected to shift toward what specific rules the SEC and CFTC will implement rather than further legislative efforts.