Crypto's Big Break: XRP, Solana, and Dogecoin Could Get Bitcoin-Level Recognition

A draft bill from the U.S. Senate Banking Committee suggests that cryptocurrencies like XRP, Solana, and Dogecoin could soon enjoy the same legal status as Bitcoin and Ethereum.

The Clarity Act

The proposed bill, known as the "Clarity Act," introduces a new category called "non-ancillary" assets. Tokens that fall into this category would not be subject to the same strict regulations as securities.

Key Factors

• Main Component: The token must be the main component of a regulated financial product, such as an exchange-traded fund (ETF).
• Timeline: If a token is part of an ETF listed on a national securities exchange by January 1, 2026, it would be considered non-ancillary.

Impact on Cryptocurrencies

Currently, XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink meet this criterion due to existing ETF listings. This change could have a significant impact on institutional investment in these cryptocurrencies.

Expert Opinions

• Jordan Jefferson, Founder of DogeOS, pointed out that a clearer regulatory path could attract more institutions to engage with these assets.
• Jamie Elkaleh, CMO of Bitget Wallet, noted that this shift reflects a broader trend in regulating crypto assets based on their use in financial products.

Uncertain Future

The bill's fate is uncertain and could be influenced by the upcoming mid-term elections. The draft also includes other provisions, such as protections for software developers and the omission of a controversial section on stablecoin yield.

The Senate Banking Committee is set to debate and potentially amend the bill in a markup hearing this Thursday, marking the first major test of this proposed legislation.