Top Researcher: CLARITY Act Is the Biggest Pending Catalyst for XRP. Here’s why

Crypto researcher SMQKE recently stated that the proposed CLARITY Act could become the most significant pending catalyst for XRP and several other digital assets.

SMQKE shared excerpts from market research and legislative analysis that noted growing institutional confidence in crypto regulation in the United States.

According to the document shared in the post, the CLARITY Act has moved further through the legislative process than many market participants initially expected.

The Senate Banking Committee reportedly passed the bill with bipartisan support in a 15–9 vote on May 14. The report added that attention is now shifting toward a Senate floor vote, where supporters would need 60 votes for advancement.

SMQKE emphasized that the market is already pricing in the possibility of regulatory clarity. The post specifically identified XRP, Ethereum, Solana, Cardano, Chainlink, and Stellar among the digital assets expected to benefit most if the legislation advances further.

XRP Positioned as a Key Beneficiary

A major focus of the tweet centered on XRP and its regulatory position. The attached research argued that tokens with a history of SEC-related legal uncertainty could experience the strongest reaction if the CLARITY Act becomes law. The report stated that XRP already showed signs of that market behavior after the committee vote, briefly rising above $1.54 before pulling back.

SMQKE claimed that additional clarity surrounding digital asset classification could strengthen investor confidence in XRP without the need for broader macroeconomic disruptions such as an oil crisis. The post described this regulatory shift as a documented long-term catalyst that has appeared multiple times throughout crypto market history.

The research also suggested that the bill could replace what many in the industry describe as “regulation by enforcement” with a more structured legal framework. According to the attached excerpts, this would reduce uncertainty for exchanges, developers, and institutional investors operating in the United States.

Institutions Continue Expanding Into Digital Assets

Another section of the shared material highlighted the increasing institutional presence in crypto markets since the approval of spot Bitcoin ETFs in early 2024. The report stated that institutional ownership of Bitcoin’s long-term holder supply increased from 8.4% to 23.9% during that period, even as market sentiment weakened temporarily.

The research further argued that crypto volatility can become manageable within disciplined portfolio strategies. It referenced a rebalanced 60/40 portfolio with crypto exposure that reportedly delivered improved risk-adjusted performance over time.

Regulation Seen as the Industry Filter

SMQKE also shared commentary suggesting that regulation is no longer viewed as a threat to the industry. However, rather than as a mechanism that could separate compliant blockchain networks from weaker projects. The attached text pointed to Europe’s Markets in Crypto-Assets framework and the GENIUS Act in the United States as examples of clearer rules emerging globally.

The report concluded that networks such as Ethereum, Solana, and XRP are among the strongest candidates to benefit from institutional compliance standards as governments continue shaping the future of digital asset regulation.

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