XRP faces heightened volatility and a potential test of $1.25 support after the Senate's 50-49 vote against the CLARITY Act, while investors brace for the Federal Reserve's interest rate decision.
XRP dropped 9.4% after the Senate failed to pass the CLARITY Act, stripping its commodity status of federal legal protection.
Coinbase fell 8.65% as the exchange most affected by the CLARITY Act's failure, given its reliance on XRP trading volumes.
Brent crude closed at $108.75 after Saudi Arabia shut down its East-West pipeline, adding to inflation fears and risk-off sentiment.
Ethereum fell 2.9% as part of a broader altcoin sell-off triggered by the failed vote and macro concerns.
Solana fell 3.4% amid the altcoin sell-off, tracking the broader crypto weakness.
Bitcoin fell 1.2% amid broader market pressure but was less affected than XRP due to its unchallenged commodity status.
XRP plummeted 9.4% after the U.S. Senate failed to pass the CLARITY Act, stripping the token of permanent federal commodity status. The sell-off triggered a broader decline in altcoins and hit Coinbase shares, which fell 8.65% due to the exchange's heavy reliance on XRP trading volumes.
The bill aimed to codify XRP's status as a digital commodity under federal law. Its failure leaves XRP vulnerable to future regulatory shifts and removes a key legislative floor that investors were counting on.
With a 92% chance of a rate hike, the Fed's decision creates a risk-off environment. Higher interest rates increase the yield on 'risk-free' assets like Treasury bonds, making speculative assets like XRP less attractive to institutional investors.