The price of XRP advanced roughly 2% in weekend trading, settling near $1.44 as broader cryptocurrency markets exhibited strength despite thinner liquidity. According to data from CoinMarketCap, the digital asset traded within a range of $1.41 to $1.46 over the preceding 24-hour period. This move occurred alongside gains in major peers, with Bitcoin rising about 1.8% to approximately $68,271 and Ether increasing around 2% to $1,987.
Regulatory Catalyst: The CLARITY Act
The positive momentum coincided with optimistic commentary from Ripple leadership regarding pending U.S. legislation. In a recent interview, Ripple CEO Brad Garlinghouse expressed strong confidence, estimating a 90% probability that the CLARITY Act—a comprehensive crypto market-structure bill—will be signed into law before the end of April. He noted significant White House support for the legislative effort. This sentiment was echoed by Coinbase CEO Brian Armstrong, who suggested on social media that market structure negotiations are progressing toward a favorable outcome for multiple stakeholders.
For XRP and similar digital assets, the regulatory landscape remains a primary price driver, often outweighing fundamental technical developments. The core debate centers on how U.S. regulators classify cryptocurrencies and which agencies hold jurisdiction. Clearer rules are seen as a critical step toward broader institutional adoption and reduced legal uncertainty for projects like Ripple, which markets payment technology utilizing the XRP token.
Imminent Regulatory Milestones
Investors are facing several near-term regulatory checkpoints. A notice in the Federal Register revealed that the Securities and Exchange Commission has initiated proceedings regarding a proposal from NYSE Arca to list shares of the T. Rowe Price Active Crypto ETF. This proposed fund could hold XRP alongside Bitcoin, Ether, and other tokens. The SEC has set a deadline of February 23 for initial public comments on the proposal, with rebuttals due by March 9. The notice explicitly listed XRP among the assets the fund's sponsor considers eligible for inclusion.
However, the path forward is not guaranteed. Public commentary does not assure approval, and the SEC possesses the authority to extend review timelines, potentially dampening the market optimism currently priced into narratives around "regulatory clarity." The digital asset market has historically shown volatility when policy expectations confront the detailed realities of legal text.
Broader Market Context
Macroeconomic factors continue to influence trader sentiment across asset classes. U.S. equity markets closed higher on Friday following a Supreme Court decision to strike down former President Donald Trump's emergency tariffs, though Trump indicated intentions to pursue a new 10% levy. On the inflation front, the Personal Consumption Expenditures price index—the Federal Reserve's preferred gauge—rose 0.4% in December and was up 2.9% year-over-year. Concurrently, fourth-quarter GDP growth slowed to an annualized rate of 1.4%.
Cryptocurrencies often trade as a proxy for expectations of looser monetary policy. Speculative assets like digital tokens tend to benefit when traders anticipate interest rate cuts and retreat when inflation data suggests a more restrictive policy environment may persist.
XRP's Specific Narrative and Challenges
While XRP is tied to Ripple's underlying payments technology, which aims to facilitate faster cross-border money movement, its price action frequently hinges on regulatory developments from Washington. This pattern has held true in recent sessions. The token remains significantly below its all-time high from 2018, underscoring the sector's volatility and the lingering impact of its legal history.
Additional complexities in the legislative process include debates over stablecoin regulations, specifically whether issuers and platforms should be permitted to offer interest-like rewards to holders of these dollar-pegged tokens.
Looking ahead, beyond the immediate legislative focus, a broader question for the market is whether the SEC will permit a wider array of crypto-linked investment funds to reach the public market without enduring years of legal challenges and product revisions. This issue carries particular weight for XRP, which has existed closer to the regulatory fault line than more established assets like Bitcoin. The next concrete date for investors to watch is February 23, the deadline for initial comments on the T. Rowe Price ETF proposal.
