It took lawsuits, delistings and three years of ETF lobbying, but XRP may now escape its most existential threat: the "security" label. According to a new draft of the U.S. Clarity Act that has just come to light, any crypto asset that is used as the main underlying asset of a U.S.-listed ETF by Jan. 1, 2026, will not be considered a security under the Securities Act of 1933. And XRP qualifies.
This single clause may do what Ripple's legal team, two partial court wins and over $200 million in legal defense could not fully achieve: give XRP an explicit legal carve-out from securities status.
The text in question, buried deep in the discussion draft, states that "a network token shall not be considered a security if, on Jan. 1, 2026, any units of that token were the principal asset of an exchange-traded product."
That would put XRP in the same category as Bitcoin and Ethereum, which the SEC has always considered nonsecurities. If it is passed as written, it will also clear SOL, LTC, HBAR, LINK and even DOGE.
Details matter for Ripple and XRP
The SEC's lawsuit against Ripple was based on the fact that XRP is an unregistered security. Now, the language of the law could directly nullify that premise going forward — not just for Ripple, but for every exchange and fund manager interacting with XRP.
Meanwhile, XRP ETFs continue to attract capital. As of Jan. 12, the total net inflows added up to $1.23 billion across four U.S.-listed products, with Bitwise, Franklin and Grayscale leading the way. With assets nearing $1.5 billion and XRP trading above $2, investor confidence seems to be in line with this legal push.
For Ripple and its global partnerships, this clause could be a big win, legally making years of SEC aggression irrelevant in a single stroke.
Gamza Khanzadaev
Godfrey Benjamin
Tomiwabold Olajide
Yuri Molchan