CLARITY Act Passes Senate Committee: XRP and Ethereum Emerge as Top Winners

On May 14, 2026, the Digital Asset Market Clarity Act, known as the CLARITY Act, was approved by the Senate Banking Committee with a bipartisan vote of 15-9. This legislation introduces a three-tier classification framework for digital assets, categorizing them as digital commodities, investment contract assets, and payment stablecoins. It also features a decentralization test to ascertain whether tokens are governed by the CFTC or SEC. Bitcoin and Ethereum easily meet the criteria, while Solana is on the cusp, and XRP is likely to be classified as a commodity following extensive legal disputes with the SEC. XRP rose 4.5% to $1.49, marking a 7.6% weekly increase. Ethereum is viewed as the most strategically advantageous long-term asset, potentially paving the way for staking ETFs from BlackRock and Fidelity. The bill provides a legal shield for DeFi developers (Section 409) and offers a $75 million fundraising exemption for token issuers. Remaining challenges include a full Senate vote requiring 60 votes, alignment with the House version, and the president's approval. SEC and CFTC regulations may take up to 18 months. Treasury Secretary Bessent aims for passage in spring 2026, while Ripple CEO Brad Garlinghouse estimates an 80-90% likelihood. Following the announcement, Bitcoin rose to $81,965, while Coinbase, MicroStrategy, and Robinhood saw increases of 9.10%, 8.16%, and 6.16%, respectively.