Will XRP Explode as CLARITY Act Passes Senate Stage? ChatGPT Sees One Big Catch

Could this important step be what XRP needs to finally break out?

After months of negotiations and delays, a US Senate panel on Thursday finally approved the CLARITY Act with a 15-9 vote.

Although there’s still a long way to go until the bills become law, since there’s a lot of opposition left and it would need to clear the full Senate, the cryptocurrency market already experienced a notable price boost once the news went live on Thursday.

The question we asked ChatGPT is what sort of impact would the CLARITY Act’s potential approval have on XRP, since many analysts in the past have noted that the asset requires further regulatory clarity (no pun intended) to unlock its next major phase up.

Impact on XRP

The bill’s structure is designed to finally clarify one of the most controversial and important questions in the cryptocurrency industry: when is a token a security, and when it is not. Given Ripple’s (and XRP’s) history with the US SEC on the topic and how much it haunted them for years, it’s safe to say that the cross-border token and the company behind it should look forward to the most for a clear answer.

As mentioned above, analysts are adamant that XRP will be among the most spectacular beneficiaries, with some expecting multi-billion-dollar inflows toward the spot ETFs tracking its performance. ChatGPT agreed to a large extent, as Ripple has always positioned XRP as a utility asset and a cross-border liquidity tool. It’s infrastructure for payments rather than a traditional investment contract, the company says.

“XRP’s underperformance in recent months or even years on broader scales was caused less by technology weakness and more by regulatory pressure… Remove that pressure, and the narrative changes fast,” said the AI tool.

Will the Price Explode?

The bullish scenario for XRP is if the bill continues to progress, while the overall market sentiment remains positive and institutions interpret the asset as safer from future SEC attacks, said ChatGPT. Then, the token could see “renewed exchange activity, increased institutional interest, and potentially a major breakout attempt.”

The first major psychological line for XRP would be the $2.00 resistance: flipping it into support “could happen surprisingly quickly if momentum accelerates.”

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However, there’s a big catch, the AI platform warned. If XRP indeed relies on the CLARITY Act’s full approval, then the fact that it might take months or even years for the complete resolution could spell trouble or consolidation for the asset.

As such, ChatGPT concluded that passing Senate now was a “huge milestone,” but it’s far from “being the finish line.”