Draft Crypto Bill Equates XRP, Solana, Dogecoin with Bitcoin Legal Status
A recent draft of the “Clarity Act” proposed by the Senate Banking Committee could significantly reshape the regulatory landscape for several major cryptocurrencies. This legislation aims to provide essential clarity on the legal status of cryptocurrencies like XRP, Solana, and Dogecoin, aligning them with Bitcoin and Ethereum under American law.
Key Features of the Clarity Act
The draft bill outlines a “non-ancillary” classification for crypto assets associated with exchange-traded products (ETPs) as of January 1, 2026. This classification exempts these tokens from being classified as securities, thereby relieving them from the stringent Securities and Exchange Commission (SEC) disclosure requirements.
Token Classification
According to the draft, a cryptocurrency would be deemed non-ancillary if it was the principal asset of an ETP listed on a regulated exchange by the specified date. The tokens potentially affected include:
- XRP
- Solana
- Litecoin
- Hedera
- Dogecoin
- Chainlink
This new classification aims to parallel the regulatory status enjoyed by Bitcoin and Ethereum, enhancing institutional access rather than driving immediate price movements.
Impact on Institutional Engagement
Experts suggest that the immediate ramifications of the bill will be felt primarily in the realm of institutional compliance. Jordan Jefferson, Founder of DogeOS, emphasized that a clearer statutory landscape would attract more institutions into engagement with these assets. The bill indicates a shift towards regulation based on how cryptocurrencies are utilized within legitimate financial products.
Jamie Elkaleh, CMO of Bitget Wallet, noted that assigning a non-ancillary label in relation to ETPs could foster a compliance environment similar to that which encouraged institutional interest in Bitcoin and Ethereum. Meanwhile, predictions of an altcoin rally have seen a slight increase, with current forecasts placing an 18% chance on such an occurrence in the upcoming quarter.
Political Considerations
The draft’s future is uncertain due to the dynamic nature of U.S. politics. The mid-term elections could heavily influence its passage. Additionally, the proposal includes sections that protect software developers, which appeals to decentralized finance (DeFi) proponents, while omitting contentious aspects regarding stablecoin yields.
The Senate Banking Committee plans to review and potentially amend the draft during an upcoming markup hearing. This bill could serve as a foundational framework for future cryptocurrency regulations, emphasizing ETP eligibility as a pivotal aspect of legitimacy in the crypto space.
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