XRP Falls 5.5% After Senate Delays Clarity Act Vote

XRP News

XRP (XRP), the digital asset associated with Ripple, was the weakest major token over the past seven days, losing 5.5% and sliding to about $1.02 as the U.S. Senate left Washington without taking up the Clarity Act. The delay matters because the market-structure bill would define which federal regulator oversees each digital asset, and traders had been watching for a clearer legal path for large-cap altcoin products. Senate Majority Leader John Thune said the measure would be considered when lawmakers return on Sept. 14, leaving a three-week window crowded with government-funding and sanctions priorities. Procedurally, the bill needs 60 votes to advance, and several Republicans have signaled opposition, while Democrats are pushing for provisions that would stop President Donald Trump from gaining personal financial benefit during his term. Trump disclosed more than $1 billion in income from crypto ventures in 2025. That political uncertainty spilled across majors: Bitcoin hovered near $64,300 after spot funds attracted roughly $626 million from Aug. 3 to Aug. 5, enough to defend the $63,000 to $64,000 zone but not enough to clear $66,000 resistance. XRP’s decline was sharper than the broader altcoin tape, with Solana, Dogecoin and Ether posting smaller moves while XRP led majors lower. Near-term macro data adds another layer. The Federal Reserve held rates at 3.50% to 3.75% in July, though three officials voted for an increase, and next week’s employment and inflation prints may reinforce tighter-policy expectations. That backdrop typically reduces appetite for higher-beta crypto, leaving XRP more exposed than Bitcoin while the Clarity Act remains stalled. The token’s underperformance also came despite generally supportive flows into Bitcoin exchange-traded products, suggesting that the current bid is concentrated in Bitcoin rather than spreading across majors. For market participants, the immediate question is whether the token can hold the low-$1 range until the Senate returns, or whether a broader bear market rotation continues to pressure assets without a near-term regulatory catalyst.

Technical and fund-flow signals frame the next XRP (XRP) threshold. Earlier in the session, at 02:31 UTC, the token traded near $1.04 with a market value around $65.31 billion, before a later 04:17 UTC reading showed it near $1.02. The token registered a 1.77% decline, underscoring that buyers have not yet seized control. Some observers describe the pattern as price construction rather than a confirmed recovery, which means confirmation must come from sustained closes, not a single bounce. Chart observers are treating the $1.05 area as the first line of defense after a symmetrical-triangle breakdown on the three-day chart left momentum fragile. Multiple gravestone-doji candles and a loss of triangle support suggest the market may still be rebuilding a base rather than preparing an immediate move toward a prior all-time high. Resistance levels being watched include $1.11, $1.21, the $1.28 to $1.30 zone, and $1.38. More importantly, analysts say a three-day close above $1.50 to $1.51 would weaken the downside setup and reduce the likelihood of a slide toward $0.88. Institutional attention received a separate lift from Grayscale’s Form 8-K, an SEC EDGAR disclosure tied to GDLC, the manager’s five-asset index fund. The filing indicates that GDLC completed its quarterly portfolio review and moved into a scheduled rebalancing process, setting up a reweighting of XRP alongside Bitcoin, Ethereum, Solana and BNB under the index methodology. No filing confirms a higher XRP weight yet, but the process raises the possibility that passive institutional exposure could increase if the index assigns the token a larger allocation. That matters because XRP’s liquidity is thinner than Bitcoin’s in many venues, whether on centralized order books or through an automated market maker, and even mechanical rebalancing can have an outsized signaling effect. Whether the fund flow becomes visible depends on the final weights and the pace of creations or redemptions, but the filing places XRP back inside a regulated institutional wrapper at a time when legislative clarity remains unresolved.

COINOTAG’s analysis ties these threads to one arc: XRP is caught between legislative delay and passive institutional positioning. The Clarity Act remains a proposal, not a final rule. Its text would assign U.S. digital-asset oversight among regulators only after enactment, so it has no effective date and binds no exchange, issuer, or custodian today. Senate procedure requires 60 votes, and the chamber is not expected to vote before Sept. 14. By contrast, Grayscale’s Form 8-K is an operational SEC EDGAR disclosure that starts a quarterly GDLC reweighting, including XRP, without creating new legal obligations for the market. Until either the bill advances or fund weights shift, price remains the clearest signal.