Ripple Confirms XRP Is Already Cleared in US - Clarity Act Could Unlock the Next Surge

Ripple has confirmed that XRP, the company's native cryptocurrency, is already cleared for use in the United States. This development adds clarity for investors and highlights the progress made by the company in navigating regulatory landscapes.

WisdomTree, one of the firms exploring XRP-based products, has withdrawn its XRP ETF filing from the US Securities and Exchange Commission. The company cited strategic reasons for halting the offering at this time, indicating no shares were sold under the registration.

The withdrawal prompted a short-term price reaction in the XRP market. The token fell roughly 5% on the day as traders processed the news. Despite this, other XRP ETFs remain active and continue to draw inflows, with total cumulative inflows now exceeding $1.25 billion just weeks after launch.

Why the Move Happened

WisdomTree submitted its XRP ETF filing in late December but decided to withdraw it on January 6. The firm stated that it is stepping back from the offering at this time, though no further details were provided on the strategic considerations.

The withdrawal comes as other XRP ETFs are already live and gaining traction. Franklin Templeton's XRPZ, Canary's XRPC, and Bitwise's XRP fund have all attracted significant inflows in recent weeks. These products are part of a broader expansion of XRP-related investment vehicles in the US market.

WisdomTree's decision does not appear to reflect broader concerns about XRP's regulatory status. Ripple has repeatedly stated that XRP is not a security under current US law, a position supported by ongoing legal and regulatory efforts.

How Markets Responded

XRP's price declined following the announcement, falling roughly 5% in a single day. This reaction was relatively isolated, as other XRP ETFs continued to attract capital. US spot XRP ETFs recorded $19.12 million in net inflows on Tuesday, with total net assets climbing toward $1.62 billion.

Franklin Templeton's XRPZ led the inflow trend with $7.35 million added, followed by Canary's XRPC with $6.49 million and Bitwise's XRP fund with $3.54 million.

The broader XRP market, however, remains stable. Outside the US, XRP exchange-traded products are already active in Europe and Asia. WisdomTree also continues to operate a physically backed XRP product in Europe, indicating that the firm's global strategy remains intact.

What Analysts Are Watching

Analysts are closely monitoring the potential impact of the Clarity Act on XRP and other digital assets. The proposed legislation aims to provide a clearer regulatory framework for crypto, which could unlock further adoption and investor confidence.

The Clarity Act is expected to address long-standing regulatory ambiguities that have hindered the growth of the crypto sector. If passed, the legislation could establish a more structured approach to crypto regulation, potentially reducing legal and compliance risks for companies and investors.

Meanwhile, six ETF applications remain pending with the SEC, including spot ETFs from Grayscale and CoinShares. These applications could shape the future of XRP investment in the US and influence broader market dynamics.

Investors are also watching for signs of renewed ETF launches or changes in regulatory positions. WisdomTree's withdrawal is one data point in a broader trend of firms navigating the evolving legal and compliance landscape for crypto-based investment products.