XRP declines as Senate delays crypto clarity legislation and Fed rate decision creates market uncertainty.
Regulation & Gov ·
XRP dropped to $1.06 this week, marking an 8% decline over seven days, as two major headwinds collided: the U.S. Senate formally shelved the Clarity Act before its August recess, and markets awaited the Federal Reserve's rate decision on July 29. The technical picture has deteriorated sharply, with a death cross confirmed between the 50-day and 200-day moving averages, relative strength index at 40.9, and negative Squeeze momentum signaling sustained downward pressure—though deeply oversold conditions suggest the token may lack further room to fall.
The Clarity Act's delay matters concretely for XRP holders and the Ripple ecosystem. The bill would codify XRP's commodity classification into law, a foundation institutional custodians, banks, and ETF issuers say they need before building products around it. When reports surfaced on July 21 that President Donald Trump had backed the bill's stalled ethics provision, XRP briefly jumped 3.25% to $1.1485, and Polymarket odds on Senate passage climbed to 43%. That optimism evaporated within a week. The Senate prioritized a Russia sanctions bill and nominations instead, leaving only a narrow window—before the August 7 recess—for passage this year. Missing it could delay another vote until 2027.
The broader crypto backdrop has darkened as well. Federal Reserve Chair Kevin Warsh's second FOMC meeting carried elevated hike expectations, with CME FedWatch showing rate-increase odds near 38% even though a hold was widely anticipated. Bitcoin retreated to $63,400–$64,000, well below June's $80,000 peak, and altcoins absorbed the brunt of the selloff. Standard Chartered's theoretical $8 XRP target depends on both full Clarity Act passage and $4 billion to $8 billion in new ETF inflows—conditions that now appear significantly less certain.