Regulatory Uncertainty and Internal Strife Weigh on XRP's Outlook

Digital Asset Market Clarity Act delayed to May amid Senate gridlock. Ripple faces industry accusations over the bill while XRP's network activity and price decline sharply.

The anticipated timeline for the Digital Asset Market Clarity Act has slipped, according to Ripple CEO Brad Garlinghouse. In comments made on Friday, Garlinghouse indicated that the legislation, initially targeted for April, is now unlikely to be passed before the end of May at the earliest. The delay stems from stalled negotiations within the U.S. Senate, complicating the regulatory landscape for digital assets. Concurrently, the crypto industry itself is witnessing significant internal disagreement over the bill's potential shape.

Industry Infighting Erupts Over Proposed Rules

Opposition is mounting from within the cryptocurrency sector. Charles Hoskinson, founder of Cardano, leveled serious accusations against Ripple yesterday. Hoskinson contends that Ripple is attempting to influence the CLARITY Act in a way that would automatically classify new blockchain projects as securities, while securing a unique regulatory exemption for XRP. He further cautioned that the proposed law could expose open-source developers to potentially unlimited liability.

Amid this controversy, Ripple continues to highlight its operational scale and future potential. The company’s proprietary treasury platform processed payments worth $13 trillion USD last year. Garlinghouse has pointed to stablecoins as a "ChatGPT moment" for traditional finance, suggesting they could serve as the primary gateway for major institutions to engage with crypto infrastructure. A notable detail, however, is that Garlinghouse stated precisely 0% of that volume was settled using crypto assets.

On-Chain Metrics and Price Action Reflect Caution

Network activity data presents a concerning picture for the XRP Ledger. This past Saturday, only 451 XRP were burned in network fees over a 24-hour period. This figure represents a decline of more than 52% compared to the previous day, signaling a marked cooling in transactional activity on the network.

Market performance has also been under pressure. Since the start of the year, XRP has shed approximately 27% of its value. The asset is currently trading just below the technically significant resistance level of $1.40. Market analysts view this zone as a critical threshold for a potential trend reversal; a sustained drop below $1.25 could trigger a new wave of selling pressure.

Institutional interest, while formally present, appears hesitant. Six spot ETFs tracking XRP collectively hold around $1 billion USD in assets under management. Inflows into these funds have remained modest, however. This suggests many larger investors are adopting a wait-and-see approach, likely postponing major position-building until the final outcome of the CLARITY Act is determined.