Ripple, XRPL, XRP Already Compliant With CLARITY Act, Says Crypto Pundit
Highlights
- Kenny Nguyen believes that Ripple, XRP Ledger, and XRP are compliant under the CLARITY Act.
- XRP Ledger's permissionless nature plays an important role in this narrative.
- Standard Chartered has projected an inflow of up to $8 billion for XRP ETFs if the legislation is passed.
Kenny Nguyen, a crypto commentator, has said that Ripple, XRP, XRP Ledger (XRPL), and already meet the criteria set forth in the proposed U.S. CLARITY Act. The bill, which aims to create a regulatory regime for cryptocurrencies, is now eyeing a Senate floor vote.
Ripple, XRPL, XRP In Focus Amid CLARITY Act Push
Nguyen recently posted on X, writing: “CLARITY ACT H.R.3633. Ripple, XRPL, and XRP are already in [compliance] with this legislation.”
The post contained a cut of the text that would clarify what a “mature blockchain” would be. The CLARITY Act proposal states that the value of a digital commodity tied to such a network should be “substantially” based on the use and operation of the blockchain.
It is also said that the network should not “restrict or privilege any users.” In addition, it should not have too much concentration of ownership among a small number of holders, per CLARITY ACT text.
Another part of the document defines a mature blockchain as a “blockchain system, together with its related digital commodity, that is not controlled by any person or group of persons under common control.”
For context, XRP is involved in building enterprise products around the XRP Ledger. Here, Nguyen’s comments reiterate a long-running argument from XRP supporters that the company’s involvement doesn’t necessarily mean that the XRP Ledger is tied to Ripple.
XRPL is operated by a distributed validator network and is an open-source blockchain that anyone can use. Moreover, it works without permission from any central authority.
When XRP supporters made this case, they have often cited the above-mentioned attributes. They also noted that XRP’s utility is based on the surge in activity on the network itself.
On XRP Ledger, Ripple’s XRP is employed for transaction charges, liquidity provisioning, cross-border settlements, tokenized assets, and other use cases. It further spotlights how XRP and XRP Ledger are interdependent but not directly controlled by Ripple. This characteristic makes the Ripple ecosystem compatible with the CLARITY Act.
Standard Chartered Predicts $8 Billion Inflows Into XRP ETFs
The regulatory clarity that the CLARITY Act is supposed to bring has also won the attention of institutional analysts. Recently, Standard Chartered stated that clearer regulations for XRP could enable up to $8 billion inflows for XRP ETFs.
If the legislation is passed, the bank estimates $4 billion to $8 billion in inflows into spot XRP ETFs. Large investors, including pension funds and asset managers, could join the market if the regulatory environment for XRP is clearer, Standard Chartered noted.
Meanwhile, Jake Claver, the Chairman of Digital Ascension Group, is now expecting BlackRock to file for an XRP ETF soon.
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