XRP Braces for CLARITY Act Showdown as Ripple Secures $200M Credit Line and Tokenized Treasury Settlements Go Live

Senate CLARITY Act could clarify XRP's status; Ripple gets $200M credit line, XRP Ledger tokenizes Treasuries in 4.2s, ETF inflows hit $25.8M. XRP price near $1.45 resistance.

The US Senate Banking Committee will take up the CLARITY Act on May 14 at 10:30 a.m., a legislative milestone that could give XRP the regulatory footing it has lacked for years. The bill, whose text was published on May 12, aims to tighten stablecoin rules and clarify the legal classification of digital assets—a distinction that directly affects whether XRP is treated as a digital commodity or a security. The White House is pushing for passage by early July, but the American Bankers Association has already pushed back against elements of the Tillis-Alsobrooks compromise that would bar rewards on idle stablecoin holdings while permitting them for active transactions.

The regulatory debate is unfolding against a backdrop of accelerating institutional infrastructure. Ripple has secured a $200 million revolving credit line from Neuberger Specialty Finance, a subsidiary of Neuberger Berman, to expand margin financing for prime brokerage clients through Ripple Prime. The division, formed after last year’s billion-dollar acquisition of Hidden Road, has tripled revenue year-over-year and now processes more than $3 trillion in annual trade volume across over 300 institutional counterparties. A key enabler of that growth was a BBB investment-grade rating from Kroll in April 2026, which opened the door to traditional capital markets.

Ripple is also putting the XRP Ledger’s speed to work in real-world asset tokenization. On May 6, a pilot involving J.P. Morgan’s Kinexys platform, Mastercard, and Ondo Finance demonstrated a tokenized US Treasury repayment that settled on the XRP Ledger in roughly 4.2 seconds, even outside standard banking hours. The transaction used Ripple’s RLUSD stablecoin, whose market capitalization has climbed above $1.5 billion. Ondo Finance’s OUSG fund, which underlies the pilot, manages $250 million in US government bonds.

ETF flows confirm the broader institutional appetite. On May 11 alone, XRP-focused spot ETFs recorded net inflows of $25.8 million, the largest single-day figure since January 2026. The Franklin XRP ETF led with $13.6 million, pushing cumulative net flows in XRP ETFs to $1.35 billion. Over the past week, all XRP-related investment products attracted a combined $39.6 million, while the broader digital-asset market saw inflows of $858 million.

Despite the bullish fundamentals, XRP’s spot price remains tethered to technical resistance. The token recently traded around $1.45, near the lower edge of a support band between $1.43 and $1.46, and was roughly 1% lower on the day. On a month-to-date basis, XRP has gained about 6%, though it is still down more than 22% year-to-date and trading well below its 200-day moving average of $1.75. The relative strength index sits at a neutral 59.2, leaving room for either a breakout or a pullback.

The immediate barrier is the $1.48–$1.50 zone. A sustained close above $1.50 would open the door to $1.61 and eventually $1.80, according to chart watchers. On the downside, a failed move would test support just beneath current levels. Data showing large exchange outflows is often interpreted by traders as accumulation, adding a layer of anticipation ahead of the Senate hearing.

In a move that underscores the ecosystem’s maturation, David Schwartz—one of the original architects of the XRP Ledger—has been appointed honorary board member of the XRP Ledger Foundation. He will retain his board seat at Ripple while taking on an advisory role at the foundation. The combination of a potential legislative catalyst, a freshly funded prime brokerage, and live tokenized settlements suggests the stage is set for a pivotal week. Whether the price follows will depend on what the Senate committee delivers.