Software Dev: If You Think CLARITY Act Won’t Affect XRP Price, You Need to Read This

Discussions over whether the CLARITY Act could influence XRP’s price continue as the digital asset gains more regulatory clarity in the United States.

While many believe the landmark court decision in the SEC’s case against Ripple already settled the issue, software engineer Vincent Van Code says that view overlooks an important distinction between a court ruling and federal legislation.

In a recent statement on X, Van Code explained that the 2023 district court decision in SEC v. Ripple delivered a significant legal victory by determining that secondary-market sales of XRP are not securities.

He acknowledged that the ruling has already produced meaningful effects across the digital asset industry. Still, he stressed that it does not provide the level of legal certainty that many major financial institutions require before making substantial commitments.

🧠👀 People say Clarity Act won't affect price of crypto such as XRP.

THAT IS NOT ENTIRLY TRUE, READ ON

— Vincent Van Code (@vincent_vancode) July 23, 2026

Why the Court Decision Is Not the Final Step

Van Code noted that the Ripple ruling has already encouraged increased institutional activity involving XRP. He pointed to developments such as expanded On-Demand Liquidity (ODL) corridors, bank pilot programs, ETF filings, and the growth of custody services as examples of progress that followed the court’s decision.

Even with those developments, he emphasized that the ruling remains the opinion of a single federal district court rather than a federal statute. As a result, he said the decision does not establish nationwide legislation that permanently settles XRP’s regulatory classification.

He explained that this distinction leaves several legal uncertainties unresolved. One concern is that the Securities and Exchange Commission or another regulatory agency could adopt a different interpretation in future cases or in other jurisdictions. He also noted that future administrations or courts could revisit or narrow the impact of the Ripple decision over time.

The CLARITY Act Could Address Institutional Concerns

Van Code explained that these remaining uncertainties help explain why many banks and large financial institutions continue to approach XRP cautiously despite the favorable court outcome.

He stated that major financial firms typically operate under strict compliance standards and often avoid taking significant regulatory risks. Because of that, many institutions may hesitate to allocate substantial capital, develop large-scale XRP products, or maintain meaningful XRP holdings on their balance sheets until Congress establishes a clear legal framework through legislation.

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In his view, this is where the CLARITY Act could play an important role. He explained that codifying digital asset classifications into federal law would provide stronger legal certainty than a court ruling alone. Such legislation, he suggested, could remove concerns that still influence compliance departments and institutional decision-makers.

Rounding up, Van Code explained that while the Ripple ruling significantly reduced regulatory uncertainty surrounding XRP, it did not completely remove it.

He maintained that many traditional financial institutions continue to limit their involvement to lower-risk activities, including experimental projects and non-custodial use cases, because the legal framework has not yet been fully established in federal law.

His comments suggest that if the CLARITY Act ultimately becomes law, it could strengthen institutional confidence and potentially influence XRP adoption in ways that extend beyond the existing court victory.