The cryptocurrency landscape may soon witness a significant evolution as a newly proposed U.S. Senate bill might classify XRP, Solana, Dogecoin, and similar tokens under the same legal framework as Bitcoin and Ethereum. The draft, part of the highly debated ‘Clarity Act,’ suggests exemptions from SEC securities rules for ‘non-ancillary’ crypto-assets integrated into Exchange-Traded Products (ETPs) by January 2026. This marks a pivotal moment in the global push for crypto regulation transparency.
What the Draft Clarity Act Means for Cryptocurrencies
Authored by the Senate Banking Committee’s Chairman, Tim Scott, the Clarity Act proposes redefining the legal status of certain cryptocurrencies. Specifically, tokens part of regulated financial products as of January 1, 2026, may earn the designation ‘non-ancillary.’ This means they would not be classified as securities, exempting them from disclosure requirements under SEC regulations.
For entities like XRP, Solana, Dogecoin, Litecoin, Hedera, and Chainlink that are currently included in ETFs, this legislation could bring institutional accessibility while streamlining compliance standards. According to Jamie Elkaleh, CMO of Bitget Wallet, “This bill signifies a broader attempt to align crypto regulations with existing financial product ecosystems, potentially unlocking demand from major institutions.”
How Institutional Investors May Benefit
By distinguishing cryptocurrencies based on their ETF accessibility, the Clarity Act could significantly increase institutional participation in the crypto market. Jordan Jefferson, founder of DogeOS, emphasizes that a clearer legal directive would encourage more financial institutions to engage with these assets. In turn, this might legitimize emerging cryptocurrencies, creating a pathway to compliance similar to Bitcoin and Ethereum’s status.
Products like the Bitget Wallet, which offer secure storage and management for multiple cryptocurrencies, could see increased adoption as institutional players and retail investors seek credible mechanisms to manage their assets securely.
The Political Wild Card
The proposed draft does, however, face political uncertainty. With midterm elections approaching, the bill’s long-term fate remains unknown. Furthermore, debates on protecting software developers and the absence of language around stablecoin yields highlight potential hurdles during Senate discussions.
The draft will undergo a markup hearing this week, where potential amendments and additional inclusions will be deliberated. Experts see this session as a litmus test for Congress’s willingness to regulate crypto assets without stalling innovation.
The Bigger Takeaway
The Clarity Act represents an opportunity to standardize cryptocurrency regulations in the U.S. With clear legal pathways for classification, altcoins like XRP, Solana, and Dogecoin could benefit from improved legitimacy. This legislation could be a game-changer in how cryptocurrencies are perceived and utilized by retail consumers and institutional investors alike, further solidifying their place in the global economic framework.
With the industry at a crossroads, staying informed and prepared to adopt new tools and strategies for crypto management is essential. Visit the Bitget Wallet for an efficient way to manage your digital assets.
