After Republican senators in the U.S. Senate released the final draft of the CLARITY legislation, debates once again intensified over whether XRP would be affected in its market attributes due to Ripple holding a large number of tokens. Lawyer Bill Morgan stated that, according to the latest text, XRP's classification in the secondary market does not depend on how much supply Ripple still holds.
XRP The secondary market attributes are once again in the spotlight
Morgan believes that the final draft of this bill has addressed a controversy that has persisted in the crypto industry for many years, namely whether the holding size of token issuers will directly change the legal status of related assets in the secondary market. According to him, XRP will be regarded as a commodity in the secondary market, and this will not change due to the holding ratio of Ripple.
This statement mainly responds to the views of some long-term critics. These critics argue that since Ripple holds a large amount of XRP, it should not be recognized as having commodity attributes. Morgan believes, however, that the final draft of the text has further narrowed down this controversy.
The final draft will be announced before the vote.
This 635-page CLARITY legislative text was released on Sunday evening, just before the procedural vote in the Senate on Tuesday. Republicans referred to it as the "final version" submitted to Democrats, stating that the text incorporated 126 amendments proposed by Democrats during the negotiation period.
From the disclosed content, it appears that the bill is not only concerned with the issue of XRP or the classification of single cryptocurrencies, but also covers topics such as federal officials holding digital assets, income arrangements for stablecoins, and restrictions on conflicts of interest for digital commodity trading platforms.
New provisions regarding officials holding cryptocurrencies and stablecoins
One of the more notable adjustments in the final draft is the inclusion of ethical provisions related to government officials' holdings of digital assets. According to the text, federal officials within the scope of the legislation are required to dispose of large holdings of digital assets or place them into qualified blind trusts.
The bill also includes a "circuit breaker" mechanism. If community banks experience a loss of deposits due to a clear flow of funds towards stablecoins, federal regulators, particularly the U.S. Treasury Department, may intervene in the earnings arrangements of these stablecoins.
In addition, the scope of protection related to the blockchain regulatory certainty act has also been narrowed, covering only the Bank Secrecy Act and civil law enforcement, and no longer extending to some previous criminal cases.
Trading platform restrictions are further tightened
The final draft also strengthens restrictions on conflicts of interest and related transactions among digital commodity exchanges, brokers, and traders, and clarifies that state consumer protection laws remain applicable.
The text also explains that the protective provisions for developers do not imply exemption from derivative legal requirements, nor do they change the scope of application for predictive markets. Overall, while advancing discussions on the classification of digital assets, the final draft of the bill has also simultaneously tightened regulatory requirements in sensitive areas such as stablecoins, platform transactions, and the holding of coins by public officials.
