XRP dropped nearly 10% after the U.S. Senate blocked the CLARITY Act, with $40 million in leveraged positions liquidated in 24 hours. Ripple called its legal footing "settled ground," pointing to a 2023 court ruling and a March SEC-CFTC interpretation, even as on-chain data shows large holders still accumulating.
XRP closed the day down nearly 10%, with its lowest wick retreating to $1.27 — the first retest of that level in over a month. Bitcoin.com puts the slide at roughly $1.29, making XRP the hardest-hit major asset. The U.S. Senate's 49-50 cloture vote blocked the CLARITY Act.
Leveraged longs bear the brunt
The drop came after XRP failed to clear resistance near $1.50, a level it had been testing before the reversal. According to CoinGlass data cited by AMBCrypto, $40 million worth of XRP positions were liquidated in the past day, with over 95% of them long positions — the strongest long liquidation since August 22. The rejection at resistance, combined with the flush of excess leverage, points to a technical setback rather than a confirmed trend reversal.
Ripple stands its ground
Ripple's chief legal officer Stuart Alderoty responded to the CLARITY Act setback by arguing "Ripple and XRP stand on settled ground." His case rests on the 2023 federal court ruling that programmatic XRP sales on exchanges were not securities transactions, along with a March 17 joint interpretive release from the SEC and CFTC naming 18 crypto assets, including XRP, as digital commodities. Ripple's corporate account separately called the failed vote a missed opportunity, while reiterating the need for clear rules.
On-chain demand holds up
Ripple is also staying active elsewhere: the company backed Velocity's $10 million funding round, a stablecoin startup building settlement infrastructure for cross-border payments. On-chain data tracked by AMBCrypto also shows 85 new addresses accumulating over one million XRP each, a pattern that appeared two days before XRP's 67% move between August 17 and 21. Ripple has also endorsed an RLUSD credit fund, adding to the XRP Ledger's utility even as the token's short-term price struggles against regulatory uncertainty.
Sources: AMBCrypto, Bitcoin.com
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