Purchasing XRP (XRP-USD) for under $2 is ‘truly a gift’ according to analyst Luke, who claims the new CLARITY Act makes the XRP token a massive winner. The Senate Banking Committee just released a 309-page draft of the new law, and experts believe it provides the most important legal protection the crypto world has ever seen. Luke stated on X that the legislation is “BULLISH for XRP and #Ripple” and noted that these players “will benefit more than any other player” in the industry.
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Luke Analyzes the New Legal Rules
The first major win in the new law is that it stops the government from changing its mind about old court cases. The analyst explained that “Court rulings are locked in” under the draft. This means if a federal court already decided that a coin is not a security, the SEC cannot go back and try to label it as one later. This specifically protects people who buy the token on exchanges, as those sales stay safe from future legal attacks.
New Rules Protect the XRP Network Builders
Another huge part of the report focuses on a new “mature blockchain” test. Because the XRP network is decentralized and has no single person in control, the law treats it as a “commodity under CFTC” rather than a security. This provides “proper protections from Securities Laws” for the people who build the technology, run the servers, and create digital wallets. These rules mean the builders can focus on making the tech better without fearing a sudden lawsuit.
The Law Allows Banks to Hold Digital Coins without Legal Worry
The final piece of the puzzle allows major financial institutions to finally use the XRP token without any legal worry. Under the new rules, “Banks can custody and stake XRP without drama,” which means they can safely hold the asset for their customers.
While banks cannot earn simple interest just for holding the coin, they are allowed to earn rewards for being active on the network. Luke believes this is the end of the government’s harsh legal tactics and claims there are “Trillions in capital waiting” to enter the market.
At the time of writing, XRP’s price is sitting at $1.45.
