XRP, DOGE surge 5%, bitcoin above $81,000 as CLARITY Act clears Senate banking panel

XRP and dogecoin surged 5% Friday as the Senate Banking Committee approved the Digital Asset Market Clarity Act in a 15-9 bipartisan vote. Bitcoin held above $81,000 despite broader market weakness tied to geopolitical tensions.

The CLARITY Act represents the most concrete regulatory progress for crypto in years. The legislation aims to establish clear jurisdiction between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) for digital assets. Specifically, the bill would classify most tokens as commodities under CFTC oversight rather than securities, shifting control away from the SEC's stricter regime.

This framework addresses the industry's core complaint. The SEC has aggressively pursued enforcement actions against token projects and exchanges, classifying tokens like Ethereum as unregistered securities. The CFTC takes a lighter touch. A commodity classification removes the threat of retroactive securities enforcement and creates on-ramps for institutional trading and staking infrastructure.

XRP benefited most directly. Ripple spent years battling the SEC over XRP's status as a security, finally securing a partial victory in July 2023. The CLARITY Act would eliminate future ambiguity around XRP and similar tokens used in payments and remittances.

Dogecoin's 5% jump reflects broader sentiment that meme coins could operate more freely under commodity rules, though DOGE remains a speculative asset with limited utility narratives.

Bitcoin's stability above $81,000 signals institutional conviction despite Trump's comments on the Strait of Hormuz triggering risk-off sentiment in equities. Macro headwinds from geopolitical uncertainty typically weigh on crypto, but this Friday's strength suggests the regulatory tailwind outweighed broader market pressure.

The bill still requires full Senate and House votes, making passage uncertain. However, the Banking Committee approval marks a watershed moment. Crypto now has bipartisan support for regulatory clarity rather than enforcement ambiguity.