Ripple and MicroStrategy Say Legal Landscape Unchanged After CLARITY Act Rejection

Ripple and MicroStrategy have informed investors that there are no legal changes regarding XRP and Bitcoin (BTC) despite the Senate’s rejection of the CLARITY Act. The bill aimed to clarify federal regulations for the cryptocurrency market in the U.S.

The legislation failed with a 49-50 vote, falling short of the 60 votes needed for passage. While the crypto market reacted initially, the impact quickly subsided.

Ripple’s Chief Legal Officer Stuart Alderoty referenced two recent court victories before the vote. In a 2023 federal court ruling, XRP trading on exchanges was deemed not to constitute securities transactions. However, the same ruling acknowledged that institutional sales of Ripple violated securities laws.

In March, both the SEC and CFTC classified XRP as one of 16 digital assets. MicroStrategy similarly argued for Bitcoin’s status, having purchased 845,050 BTC at $6.373 billion (approximately $75,412 per coin). Bitcoin traded around $76,206 post-vote, about 1% higher than the purchase price.

The CLARITY Act had previously passed the House in July 2025 with a 294-134 vote, including support from 78 Democrats. However, it was rejected by the Senate 14 months later. House Majority Whip Tom Emmer criticized Senator Kirsten Gillibrand for praising the industry during a March panel discussion but voting against the bill.

Before the vote, 18 state attorneys general urged Congress to reject the legislation. Chainlink warned that prolonged regulatory uncertainty could drive developers overseas, while Grayscale stated that continued efforts by the SEC and CFTC have helped the industry grow, with both firms now expecting concrete regulations from regulators rather than lawmakers.