The Clarity Act represents a pivotal shift in U.S. crypto regulation, moving the sector out of prolonged legal uncertainty. Banks would gain the ability to custody and trade digital assets like XRP with clear legal protections, eliminating litigation risks that have historically restricted institutional participation.

XRP's journey toward regulatory clarity gained substantial momentum through 2023 court decisions that established its non-security status. This legal precedent opens the door for broader mainstream financial institutions to integrate crypto assets into their operations.

Once implemented, such legislation would reshape institutional adoption dynamics across the industry. Financial institutions currently sidelined by compliance concerns could finally enter the market with confidence, potentially triggering significant capital flows into regulated digital asset markets.