XRP holders face a July 23 deadline on the CLARITY Act. Here's what's actually at stake.

Washington has been arguing about who gets to regulate crypto for years. By July 23, XRP holders may finally get an answer, at least on paper.

The CLARITY Act, which would formally define which digital assets fall under the SEC’s jurisdiction and which belong to the CFTC, is approaching what traders and lobbyists are treating as a soft deadline. Senate leadership has signaled a late-July target for floor action, and markets are pricing in a real probability of passage.

What the CLARITY Act actually does

The CLARITY Act tries to write the rule book. It would establish a framework for classifying digital assets, draw a cleaner line between SEC and CFTC oversight, and give projects a pathway to shift from securities status to commodity status once a network becomes sufficiently decentralized.

The bill cleared the House and advanced through the Senate Banking Committee as of May 14, 2026. Passage requires 60 votes, which means the bill needs bipartisan support to survive a filibuster. Two sticking points are holding things up: provisions around ethics disclosures for public officials holding digital assets, and language related to illicit finance and anti-money laundering obligations.