US Senate Bill Could Unlock Institutional Floodgates for XRP, Solana and Dogecoin ⋆ ZyCrypto

A draft of a pivotal U.S. Senate bill could significantly reshape crypto regulation by placing major assets such as XRP, Solana, and Dogecoin on equal regulatory footing with Bitcoin and Ethereum.

Included in the latest draft of the Senate Banking Committee’s CLARITY Act, the proposal signals a decisive move toward clearer, more predictable rules for the digital asset market, potentially accelerating institutional adoption and market confidence.

Released by Senate Banking Committee Chairman Tim Scott, the draft legislation draws a clear line between “ancillary” and “non-ancillary” digital assets.

Tokens deemed non-ancillary would be formally excluded from securities classification, freeing them from SEC registration and disclosure rules, marking a potential breakthrough on one of the crypto industry’s most long-running regulatory pain points.

The draft bill sets a clear, objective threshold for classifying digital assets. A token would be deemed “non-ancillary,” and thus excluded from securities status, if, by January 1, 2026, it serves as the underlying asset of a spot exchange-traded product (ETP) listed on a U.S. national securities exchange. 

Notably, this standard aligns with the regulatory precedent already applied to Bitcoin and Ethereum, both of which underpin approved U.S. spot ETPs.

Based on current ETP listings and regulatory filings, the provision would likely extend to major digital assets such as XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink. If enacted, these tokens would receive the same regulatory status as Bitcoin and Ethereum from the law’s effective date, delivering long-awaited clarity and certainty for investors, exchanges, and institutional market participants.

Why does this matter? Well, the implications are substantial. By eliminating the persistent threat of securities enforcement, the CLARITY Act could catalyze institutional adoption, deepen market liquidity, and significantly reduce compliance uncertainty for U.S.-based crypto firms. 

Crucially, it would signal a clear shift away from the SEC’s regulation-by-enforcement approach toward a rules-based framework long sought by the industry.