XRP rises as the Clarity Act advances and ETF inflows hit $25.8 million, signaling potential institutional adoption.
XRP, trading near $1.40, shows signs of recovery as regulatory and institutional developments bolster its outlook. The Clarity Act, which aims to classify XRP as a digital commodity under federal law, cleared the Senate Banking Committee on May 14 and is set for a full Senate vote in June. The bill could resolve long-standing regulatory uncertainty for Ripple, XRP’s issuer, which settled a lawsuit with the SEC last August.
Spot XRP ETFs saw inflows of $25.8 million on May 11, the highest single-day total since January. The surge in institutional interest follows the SEC’s classification of XRP as a commodity, a status the Clarity Act could cement. Analysts suggest the bill’s passage may accelerate adoption by financial institutions, which have remained cautious amid legal ambiguity.
XRP’s price briefly jumped after the Senate committee’s approval, reflecting market optimism. The cryptocurrency, which peaked above $3 last year, remains below its 2023 highs but could regain momentum if regulatory clarity and ETF demand persist.