XRP Tanks on Red Sentiment over U.S. Clarity Act Pause
Ripple (XRP) tanked 5% to $1.05, the lowest in weeks, due to deteriorating investor sentiment and broader market sell-off pressure. The crypto market is down to $2.25 trillion on Tuesday.
The total cryptocurrency market capitalisation fell 2.8% to $2.25 trillion. Bitcoin dropped 3.1% to trade at $63,300, while Ethereum declined 3.5% to $1,880.
Every sector experienced a loss, with the non-fungible token (NFT) sector suffering the steepest decline of 12%, while other sectors fell between 1% and 10%.
Investors reacted negatively across the cryptocurrency market as the US Senate temporarily paused the Clarity Act, a pivotal bill intended to establish federal regulatory frameworks for digital assets, due to unresolved disagreements regarding ethics provisions and state enforcement powers.
New York Attorney General Letitia James warned that the current bill would weaken state-level fraud prosecution, while Democrats demand stricter rules to prevent conflicts of interest involving public officials and their families’ crypto holdings.
This legislative gridlock creates immediate uncertainty for the industry, as the window to pass significant laws before the August recess and the upcoming election cycle is rapidly closing.
For investors, the delay means the regulatory environment will remain fragmented between federal and state jurisdictions for the foreseeable future.
The inability to secure a bipartisan compromise suggests that clear compliance guidelines for exchanges and DeFi protocols will not be established this year, potentially hindering institutional adoption and leaving firms vulnerable to varied local enforcement actions.
Markets are also monitoring the US Federal Reserve’s 28–29 July policy meeting and its potential impact on risk assets, including cryptocurrencies.
ETFs reached $592.5 thousand. Only the Franklin $XRP ETF (XRPZ) recorded net inflows yesterday, with a daily net inflow of $592.5 thousand, bringing its cumulative historical net inflows to $422 million.
As of the time of this writing, the total asset value of $XRP spot ETFs stands at $1.002 billion, with an $XRP net asset ratio of 1.47%, and the historical cumulative net inflows have reached $1.495 billion.
Meanwhile, A post on X asking whether 20,000 $XRP is enough for retirement drew heavy criticism, highlighting the gap between optimistic price targets and current reality.
Jake Claver, chairman of DAG Family Office, noted that if $XRP reached $100, a 20,000 position would equal $2 million — and at a conservative 5% yield that could generate about $100,000 a year.
XRP trades near $1.10, valuing 20,000 tokens at roughly $22,000; reaching $100 would require nearly a 90x gain and sits far above its $3.65 all-time high. XRP Price Prediction: Bullish Momentum Forms as Ripple Taps New Platforms
