How High Can XRP Go By September if the CLARITY Act Becomes Law?

XRP (CRYPTO: XRP) trades at $1.51 today, up over 50% from its $0.9877 cycle low on August 17. XRP has already priced in some optimism around the CLARITY Act, the bill that would classify XRP as a commodity under federal law, but it still has to clear a cloture vote on September 15 before the Senate can even hold a full vote.

If the CLARITY Act keeps moving toward becoming law, how high could XRP realistically trade by September, and would the rally hold once the news is priced in?

What Would the CLARITY Act Mean for XRP?

The CLARITY Act would classify XRP as a digital commodity under federal law, instead of leaving it in the securities gray area that led the SEC to sue Ripple in December 2020.

The SEC and CFTC already classified XRP as a digital commodity in a joint intrepretation in march, but that is not law yet and another administration coud change it. So, the CLARITY Act is what would make it a permanent federal law. The reclassification would also incentivize large U.S. banks and asset managers to hold XRP directly, without the legal risk that has kept most of them out.

XRP rose above $1.50 after the Senate Banking Committee voted 15-9 in May, before retracing to $1.40 as early buyers took profit. A committee vote only recommends action, but the Senate isn’t required to act on it.