Researcher Shows Why XRP, XLM, and HBAR Will Benefit from CLARITY Acts and Others

Hedera, XRP, and Stellar posted some of the strongest returns among 20 tracked index constituents last quarter. The three assets rallied 367%, 240%, and 237%, respectively.

These numbers come from a document shared by crypto researcher SMQKE (@SMQKEDQG), which revealed that “Layer 1 coins from the previous cycle outperformed the rest in the previous quarter.”

That performance did not happen in a vacuum. These assets spent years under intense regulatory scrutiny, with authorities frequently labeling them as securities. That pressure tested their networks, their communities, and their staying power, and they endured it.

Regulation Has Been the Defining Factor

XRP’s history with the U.S. Securities and Exchange Commission (SEC) is well documented. The years-long legal battle shaped how the market perceived the asset. XLM and HBAR faced similar questions about their status under existing securities law.

That regulatory overhang suppressed institutional interest and limited capital inflows. Many investors stayed on the sidelines while the legal landscape remained uncertain. However, the assets still performed, and now the environment is shifting.

A New Regulatory Climate

The current U.S. administration has signaled a more favorable stance toward the crypto industry. The document SMQKE shared pointed directly to this shift, noting that “with a more favourable regulatory environment expected under the new U.S. administration, these assets are likely to operate with less regulatory scrutiny.”

Assets like XRP have secured full regulatory clarity, and less scrutiny means lower risk for institutional participants. It also means clearer pathways for adoption by businesses that previously avoided these assets due to compliance concerns. Capital follows clarity, and when the rules become more defined and favorable, investment activity increases.

What This Means for Price Growth

SMQKE connects the regulatory shift directly to price performance. His analysis states these assets are “likely to outperform in the future as blockchain adoption continues.” The combination of reduced legal risk, established network utility, and increasing institutional appetite creates conditions for sustained growth.

XRP operates as a payment settlement layer. XLM targets cross-border transactions. HBAR powers enterprise-grade decentralized applications. Each has real-world use cases that extend beyond speculation. That utility gives them a foundation that many other assets lack.

The Investment Case

The previous quarter demonstrated that these assets can generate significant returns. The regulatory environment that previously limited their growth is now easing. Institutional investors who sat out earlier cycles now have fewer barriers to entry.

SMQKE’s analysis shows that these three assets faced more regulatory pressure than most of the market and survived it. Now they stand to benefit directly from the policy shift underway in the U.S. The evidence from last quarter’s performance supports that view.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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