- XRP’s next growth phase depends on regulatory clarity, not new technology, with the proposed Clarity Act seen as the key catalyst.
- Clear U.S. market structure could unlock institutional capital, ETF access, and deeper liquidity.
- With Ripple’s infrastructure already live, 2026 could mark XRP’s transition into a regulated global settlement asset.
Crypto analyst X Finance Bull has argued that XRP’s price trajectory is less dependent on new technological breakthroughs and more on regulatory green lights. In a recent post, the analyst stated that XRP “doesn’t need new tech, it needs legal structure,” pointing to the proposed Clarity Act, expected in early 2026, as a potential turning point for the asset.
According to the analyst, XRP’s infrastructure is already in place through Ripple’s payments network. What has been missing, he said, is a clearly defined regulatory framework that allows institutional capital to engage without legal uncertainty.
What the Clarity Act Means for XRP
The image accompanying X Finance Bull’s post outlines why the Clarity Act could be structurally bullish for XRP. The legislation aims to clearly define how digital assets are regulated in the United States, determining whether they fall under commodity oversight by the CFTC or securities regulation by the SEC.
For XRP, this clarity could remove years of ambiguity that previously slowed institutional participation. The framework would allow market participants to better assess risk, comply with regulations, and deploy capital at scale. The analyst highlights that clear regulation could:
- Remove lingering legal uncertainty
- Allow institutional capital to enter XRP markets more confidently
- Increase overall liquidity
- Support stronger and more efficient price discovery
Also Read: Pundit: XRP Supply Will Tighten and Demand Will Surge in 2026 – Here Are the Key Drivers
The $XRP Price Doesn’t Move First. Legal Structure Does 🚨
Most don’t realize this: XRP doesn’t need new tech. It needs green lights. The Clarity Act slated for early 2026 provides that.
It clears up market structure, opens ETF access, and locks in commodity status. That means… pic.twitter.com/51CMCQDr6b
— X Finance Bull (@Xfinancebull) December 29, 2025
ETF Access and Commodity Status in Focus
X Finance Bull emphasized that regulatory clarity could also unlock broader access to exchange-traded products tied to XRP. With a clearer market structure and a defined commodity status, XRP could become eligible for deeper participation through regulated investment vehicles.
He noted that ETF access would improve liquidity and price discovery, reducing volatility tied to thin markets and speculative trading. In this scenario, XRP would evolve into a regulated liquidity asset rather than a legally constrained token.
Ripple Infrastructure Positions XRP as Liquidity Backbone
With Ripple’s payments infrastructure already operating across multiple corridors, the analyst believes XRP is well-positioned to serve as a regulated liquidity backbone. He argued that once legal frameworks are finalized, the U.S. could effectively export XRP-based settlement infrastructure to global markets.
In his view, XRP’s role would shift from a debated crypto asset to a compliant settlement layer embedded within traditional finance.
Where XRP Could Be Headed in Early 2026
Looking ahead, analysts have outlined a bullish but measured outlook for XRP’s price in early 2026. The Ripple-backed coin price could move toward the $3 level in a more realistic scenario. From current levels near $1.90, such a move would represent a gain of more than 50% over the year.
While not an extreme projection, analysts argued that this level of appreciation would be significant given XRP’s size and maturity.
They point to several supporting factors, including ongoing transaction growth, rising institutional capital flows linked to spot ETF developments, and increasing real-world adoption of assets used for cross-border settlement.
Regulation as the Final Piece
X Finance Bull concluded that XRP’s next major phase hinges on regulatory structure rather than innovation. With transaction demand growing and institutional interest building, the Clarity Act could provide the final piece needed to unlock deeper liquidity and sustained price performance.
As 2026 approaches, investors are increasingly watching whether legal clarity can transform XRP from a long-debated asset into a fully regulated component of the global financial system.
Also Read: Ripple-SEC Lawsuit Reflection: Litigation Paved the Way for XRP ETFs Launch
