The crypto world has been waiting years for clear rules, and now it looks like they might finally arrive. U.S. Senator Cynthia Lummis recently hinted that the Clarity Act could be passed as early as October.
Why This Matters for XRP
In an interview with Paul Barron, crypto analyst Zach Rector says the Clarity Act could be the turning point for XRP adoption. He explained that big institutions with trillions of dollars to tokenize and move on-chain have been sitting on the sidelines because the rules were too murky. Once the Clarity Act clears up who regulates what and how DeFi providers can operate, those excuses disappear.
“This is the big unlock. ETFs should be live, companies could start putting crypto on their balance sheets, and institutions will finally feel safe using the XRP Ledger,” Rector said.
Permissioned DEXs: A Safer Path for Banks
One of the biggest innovations tied to XRP is the idea of permissioned decentralized exchanges (DEXs). Regular DEXs are open to anyone, which is a problem for banks that need to avoid sanctioned or shady players. A permissioned DEX solves this by letting only verified participants join the pool.
Rector gave an example, “If SWIFT wanted to do a permission DEX on the XRP Ledger, they could bring all 11,000 member banks and they’d be able to prove with credentials that they’re supposed to be in that liquidity pool. That is what institutions have been waiting for.”
This setup would allow banks and payment companies to use the same technology as the public XRP community, but in a way that fits strict compliance rules.
The Rise of Crypto Treasury Companies
Another factor that could boost XRP is the rise of crypto treasury companies. These firms hold digital assets like XRP on their balance sheets. By locking away large amounts of tokens, they can create scarcity and sometimes spark what analysts call a “supply shock.”
There are already a few treasury companies looking at XRP, with Arrington XRP Capital making a move in this direction. If more follow, it could put even more upward pressure on XRP’s price. At the same time, Rector warned that these firms can also be risky. “They are bullish for adoption, but if they overextend, they could end up triggering the next market correction.”
No More Excuses
Ripple itself has acted as a de facto treasury for years, holding billions of XRP in escrow and releasing it gradually. With the SEC’s stance softening and the Clarity Act potentially passing within weeks, the landscape for XRP could change fast.
Rector put it simply: “After this, there are no more excuses. If a project does not grow, it is not about regulation anymore.”
