Main Points of Interest
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Coinbase’s CEO Brian Armstrong has made another visit to Capitol Hill.
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Senate Republicans unveiled a new draft of the extensive 616-page CLARITY Act.
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The proposed legislation introduces ethics restrictions for cryptocurrencies, but there is Democratic resistance to exclusive enforcement by the Department of Justice.
With the CLARITY Act now at a pivotal moment, renewed discussions are occurring after Senate Republicans released updates ahead of a potential vote next week.
This comes as Brian Armstrong of Coinbase has returned to Capitol Hill to advocate for the legislation, stating it is “on the one-yard line.”
Analysts are now weighing whether the price of XRP could soar to $27 or drop below $1 as the legislation gains momentum.
Coinbase’s CEO Advocates for the CLARITY Act
Armstrong’s visit to Washington coincides with mounting pressure from the crypto sector on lawmakers to finalize negotiations before the upcoming August Senate recess.
“This bill is at the one-yard line,” Armstrong mentioned in a video from his visit.
He emphasized that the lack of a comprehensive federal framework for the crypto market has put consumers at risk and hindered legitimate businesses in the US.
Armstrong pointed out that the “current situation is not benefiting anyone in the US,” citing the FTX collapse as a warning of the dangers consumers face without adequate safeguards.
Additionally, he expressed gratitude towards the members of the Stand With Crypto organization for reaching out to their lawmakers.
Armstrong forecasts that the bill could make it to the Senate floor in the coming weeks, although the absence of confirmed backing from Democratic members poses a significant hurdle.
Republicans Unveil Ethical Guidelines for the CLARITY Act
On Wednesday, Senate Republicans distributed the most recent iteration of the CLARITY Act.
This updated draft aims to address a long-standing conflict concerning the crypto interests of federal officials.
The ethical guidelines outlined would prohibit the president, vice president, members of Congress, and other designated officials from promoting or endorsing digital assets for compensation.
Additionally, the proposal would broaden the disclosure obligations for digital assets valued at over $1,000.
Officials who violate these rules may be required to relinquish their profits and incur civil fines.
Sen. Cynthia Lummis commended Trump for embracing these ethical limitations.
“This will be remembered as the moment when a president chose to uphold higher ethical standards than what the law requires,” she stated.
Conversely, Sen. Angela Alsobrooks criticized the enforcement approach that relies solely on the DOJ as “a non-serious proposal.”
“If that’s the phrasing, I wouldn’t support the bill,” she remarked, according to Politico.
Furthermore, the latest report indicated that the updated language had yet to gain favor from any Democrats.
Former CFTC Leader Believes CLARITY Act Faces Challenges
Christopher Giancarlo, the former chairman of the CFTC, is skeptical about the bill’s chances of passing.
According to Crypto in America host Eleanor Terrett, Giancarlo suggested that there is “more than a 50% probability” that the CLARITY Act will not see success.
However, he also mentioned that the final outcome would be “acceptable.”
Giancarlo posited that the development of crypto could proceed under the regulatory frameworks set by the SEC and CFTC.
He also noted that advancements made by regulators and the crypto sector in the forthcoming two years would be tough to reverse for any future administration unsupportive of crypto.
Why Has There Been a Drop in Polymarket Odds for the CLARITY Act?
Traders in prediction markets have become increasingly skeptical about the bill’s likelihood of completing the congressional process this year.
As of this moment, Polymarket indicates a 42% chance for the CLARITY Act to become law, despite the unveiling of the new text and Trump’s acceptance of the ethical frameworks.
Recently, Fundstrat co-founder Tom Lee suggested that traders in prediction markets might be underestimating the legislation’s chances.
Lee backed the analysis from Fundstrat’s Head of Digital Asset Strategy, Sean Farrell, who indicated that discussions with negotiating groups showed more optimism than current market prices suggest.
Lee claimed that Polymarket and Kalshi “probably underestimate the probabilities of passage.”
Could XRP Potentially Reach $27?
The ongoing developments regarding the CLARITY Act have reignited attention on a more optimistic long-term prediction for XRP.
Earlier this month, the crypto analyst known as ChartNerds suggested that XRP could eventually ascend to $27 following the resolution of its current market downturn.
According to the analyst, historical bear markets for XRP have stretched from 400 to 790 days, with declines ranging from 85% to 96%.
“In 2026, we’ve only seen a 350-day correction, along with a 71% decrease from the July 2025 all-time high,” ChartNerds posted on X.
The analyst remarked that XRP’s bear cycles are becoming shorter and less severe over time.
ChartNerds also indicated that the cryptocurrency might be nearing a historical bottom in its cycle.
“We are approaching the timeframe to mark a historical bottom between now and the end of the year,” the analyst noted.
It was also suggested that XRP could enter a prolonged accumulation phase after setting a cycle low.
This phase might lead to a “significant reevaluation toward Fibonacci extension targets of $8/$13/$27 in subsequent years,” according to ChartNerds.
It’s crucial to note that Fibonacci targets do not incorporate demand, adoption, or shifting market conditions, making the $27 prediction quite speculative.
Currently priced at around $1.13, XRP would need to increase nearly 24-fold to hit $27, representing a substantial gain of about 2,290%.
The cryptocurrency would first have to reclaim its previous high of $3.65 before advancing another 640% to reach the top target suggested by ChartNerds.
With approximately 62.47 billion XRP in circulation, a price point of $27 would translate to a market cap nearing $1.69 trillion.
Analyst from Motley Fool Predicts XRP May Fall Below $1
The optimistic outlook from ChartNerds contrasts sharply with recent predictions from Motley Fool analyst Anthony Di Pizio.
Di Pizio expressed that XRP faces inherent structural challenges that even favorable regulations and the growth of Ripple’s payment solutions may not solve.
Banks can benefit from Ripple’s payment technology without utilizing XRP, as the network also accommodates fiat currencies. Ripple’s stablecoin, RLUSD, might provide a more stable option for certain settlement operations.
Moreover, Di Pizio argued that XRP’s function as a bridging currency does not necessarily guarantee sustained demand.
An institution purchasing XRP to execute a payment could be offset by the recipient selling the tokens promptly for their desired currency.
According to the analyst, XRP will only see a “real increase in value” if users find a strong reason to “acquire and hold” it over the long term.
Instead, Di Pizio predicts that XRP will be trading “well below $1 in five years.”
He suggested that a repeat of XRP’s 95% decline following its peak in 2018 could lead the cryptocurrency towards $0.18.
What Must XRP Achieve to Hit $27?
XRP would have to navigate several significant price and valuation challenges to reach the $27 mark.
Currently around $1.13, XRP would need to nearly increase 24 times, reflecting a gain of approximately 2,290%.
The first major challenge would involve reclaiming its 2025 peak of about $3.65, necessitating a rise of over 220%.
Following that, XRP would need to jump another 640% from its previous high to achieve $27.
With around 62.47 billion XRP circulating, a price of $27 would give it a market cap of approximately $1.69 trillion.
If the maximum supply of 100 billion tokens were valued at the same price, the fully diluted valuation would come to $2.7 trillion.
Achieving this scale would likely necessitate more than just the passage of a single US bill.
The CLARITY Act aims to alleviate regulatory ambiguity, clarify the roles of the SEC and the CFTC, and simplify participation for regulated institutions in the digital asset landscape.
However, it would not mandate that banks, payment providers, or investors acquire XRP.
Top XRP Insights
This article titled “XRP to $27 or $1? CLARITY Act Faces Make-or-Break Talks as Coinbase CEO Returns to Capitol Hill” was first featured on ccn.com.
