Ripple’s XRP is seizing the limelight After a new CLARITY Act draft was released by Senate Republicans prior to Tuesday’s important procedural vote. The new text includes statements that could impact the regulatory status of XRP and other network tokens in the United States.
XRP Gains Ground From Digital Commodity Definition
Bill Morgan, a pro-XRP lawyer, pointed out the changes on X. He stated that the new language differentiates between XRP’s regulatory status and the quantity of XRP that Ripple holds.
Morgan wrote, “Under this most recent draft XRP will be a crypto commodity in secondary markets regardless of how much XRP Ripple holds.”
To tease Bitcoin maximalists, he declared, “Deal with it Bitcoin maxis.”
However, both XRP and Ripple are not named in the bill. Morgan’s statement is a general application of the draft’s network-token provisions to XRP. Thus, the language may become a crucial aspect of the continued XRP regulatory clarity.
The proposed legislation provides a definition for “digital commodity.” It is applicable to assets that are digital and can be transferred from person to person. These assets need to be also be logged on a distributed ledger.
The draft then states that the definition “includes a network token, including a network token that is an ancillary asset.”
Under this most recent draft XRP will be a crypto commodity in secondary markets regardless of how much XRP Ripple holds.
Deal with it Bitcoin maxis https://t.co/ioJpbBlsyo
— bill morgan (@Belisarius2020) September 14, 2026
The network-token language is of special importance for XRP. The CLARITY Act draft defines ancillary asset separately as a network token the value of which is dependent on entrepreneurial or managerial activities that are associated with an originator, or related to the originator.
There is no change in any provision of the legislation that will cause an ancillary asset to cease to be a network token. Under Morgan’s interpretation that distinction may prove to be of importance for XRP.
Treatment of Secondary Market Crypto Sales
It has direct wording for secondary transactions in the draft. The sale or distribution of a network token before the law goes into effect “shall be treated as not involving” a security transaction under certain provisions of federal securities law, it says.
That clause seems to be a major component of Morgan’s XRP claim. It stresses on the transaction and the nature of the network token. It does not establish a rule that an creator’s crypto holdings automatically change that treatment.
The draft also covers XRP’s potential market access. It is not possible to prohibit a network token from being listed on a digital commodity exchange just because it is a network token.
The crypto market structure bill does contain provisions with respect to ownership. Some of the holders may be deemed “related persons” if they have certain ownership percentages.
Those provisions can lead to restrictions or disclosures. They do not mention that originator’s like Ripple having a massive stake in XRP automatically prevents the native crypto from getting digital commodity treatment on secondary markets.
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