MASSIVE XRP CLARITY ACT SHOCKER JUST DROPPED! WATCH BEFORE THURSDAY!

Added: 2026-05-12

[00:00:00]Well, ladies and gentlemen, the market is pretty choppy today. even though we did get a major release of the 309 page draft of the Crypto Clarity Act. And let me just say this right now, going through the document, I will have an AI summarization in this video using chat.

[00:00:20]Um, just to kind of save you guys' time, but just going through the entire document, I mean, it's kind of wild to see the type of things that they have snuck into this bill. Um, but also what the bill really entails. and we're going to go over that in this video. Uh but first and foremost, let's take a quick look at the market. So, the market is looking a little bit choppish here. Uh Bitcoin is back down to the low 80K region. Big surprise there, right? Um obviously, it's not really a big surprise, but you know, just kind of looking at how things are currently trading. Um Ethereum is down about almost 2% today. XRP is down, you know, pretty much half a percent. Nothing too crazy there. Um, is the market going to continue to sell off? That's what everyone wants to really know. And ultimately speaking, I do think that we are going to see a little bit more of some choppish price action this week.

[00:01:11]Um, it's going to be a pretty volatile week. Looking at XRP, we are in the red zone. I have been really kind of tracking this price action for a bit of time now. If you guys have been in the Discord, even if you haven't been in the Discord, I'm still looking for us to most likely retest the high dollar30 region. Um, that's basically what I'm watching for right now with XRP. It's just chop. I mean, ultimately speaking, this entire time since going all the way back to like the beginning of February, not much has happened. Like, if we're really looking at price action, it's been very boring. Um, there's been some extremely exciting announcements, but price action is telling us that nothing is happening. And that's the type of price action that I actually love to look at because, you know, there was times like this in the past as well where everyone was like, "Oh, well, nothing's happening." Like even if we go back to, you know, prior to November, you know, the price action was looking pretty negative. We were actually in a downtrend back here all the way into November, and that was back in July. So, you know, price action was pretty, you know, it wasn't that exciting at all. It was pretty boring um going into November before the biggest move actually happened on XRP in a very long time. And now we're kind of in, you know, sort of a similar situation a bit, but it's kind of a different story, especially on like the weekly. Like we are still in a downtrend here. Uh but we are just trading at resistance. We do have a slight high back here in September. It's question on if we're going to do something similar to that or not, but you know, everyone is getting pretty bearish on Bitcoin right now. Um, I've been seeing a lot of charts looking like this where everyone's like, "Oh, look, Bitcoin is at 82K." Um, and we're now trading at like 80.7K. We're going to repeat the same pattern. We're going back down to like $54,000. And listen, even if that was the case, like, would we really be upset if we got this zone down here retested on Bitcoin? I mean, we're talking about from our current price point down about 33% or so. Yes, most old coins would would get hit massively. Um, but I'm just like numb to the negative price action in the space anymore. And don't get me wrong, like yeah, influencers screaming like, "Buy the dip, buy the dip." Every single time that we have a dip, it gets very frustrating. But that's why we don't really buy until things are down like 60% or so. Um, now with that, Bitcoin, we don't buy when it's down 60%. With Bitcoin, we we buy when it's down like about 50 or so percent. uh most old coins while Bitcoin is down 50% will be down way more like for an example XRP I think is down from its you know previous peak yeah it was down like 68 almost 70%. The 60% level on old coins is perfect for accumulating. So in my opinion like we're already kind of at the point where we should be accumulating XRP if we do have like a crazy selloff. Yes, it would be a huge generational buy opportunity, but I'm just not seeing like this crazy crash that everyone is, you know, calling for.

[00:04:08]Um, is it similar to like 2022 in the sense of like, oh, did we have a similar price move into like April? Yeah, we did, but we're now in, you know, May and price action doesn't even look similar to that time frame back there. So, everyone's trying to, you know, guess what's going to happen next. Obviously, everyone's going to get this wrong, including myself. uh we might have a sell off back down to like the the high like 70 or sorry the low uh 70k region, high 60k region, but after that I still think that we just kind of continue up um you know throughout the rest of this year. But that's my opinion. We'll see what happens. The main thing is the crypto market structure bill. So everyone's saying like it's happening. I don't understand what we're talking about here where we're saying like it's happening. Um, if you believe in crypto long-term, why don't you lock in on an IRA account from iTrust Capital? They offer one of the best platforms out there for anyone that is planning their retirement around crypto. And the best part about this is, yes, there's tax advantages built within this platform.

[00:05:10]And also, the best part about this is that they offer everything you need for tax reporting. If you sign up today and deposit $1,000, you get a free $100 bonus utilizing my link down in the description below as it was in the comments below. So, what are you guys waiting for? Go check them out. You won't regret it. And with that being said, let's dive on in back to the video. I guess like maybe it's just like, oh, hey, look, it's actually happening. Like they released the text.

[00:05:36]Uh, which is great. I mean, I think that this is awesome. Um, but you know, clarity is still sometime out. Like even if this did get passed on Thursday, it got, you know, fully passed through. The vote was good, we still probably have until roughly July to get this, you know, fully signed into law. So, we still have a few obstacles that we need to get through, but this is definitely a good update that we got the full draft in front of us. Uh, we can now read it, but we do have huge breaking. US Senate just released a crypto market structure bill final draft. And here we have from the US uh US uh Senate Banking Committee GOP chairman Tim Scott Lumis and also Tillis released market structure text ahead of next week's or sorry ahead of this week's markup uh the Senate Clarity Act delivers clear rules of the road protects investors combats illicit finance and keeps innovation in America.

[00:06:27]Now, if we look at what's happening here, what's crazy about this bill, okay, I have it open over here, like they it's a pretty lengthy bill, as you guys can see, 309 pages. Uh, it's no joke.

[00:06:41]They snuck a housing bill inside the crypto bill.

[00:06:48]I do think that this is kind of telling us that considering the fact that they snuck this in, we will most likely get this passed through.

[00:06:58]But we have here from Eleanor Tourett that there appears to be a housing bill inside the crypto bill. Pages 300 to 309 lay out the Build Now Act, which looks to create a federal program designed to encourage local housing growth. And uh yeah, this is pretty interesting. Um, no big surprise there. I mean, like if we really look at, you know, who's a part of some of these bills, like Elizabeth Warren has her hands on most of this stuff. Um, which is kind of crazy, but you know, she is a part of it. But looking at this, I feel like the only time that these politicians get their slimy hands on things like this and they sneak like other uh bills inside of like a big bill like the crypto bill, it typically tells us that they're about to pass the bill. because why else would they sneak this in just to get this completely denied? It feels as though this Thursday we are about to get the Clarity Act passed through um and it will start the process of finally getting it signed into law. Now, looking at the bill, like I said, it's a pretty lengthy one. Here we have the full update from the banking GOP.

[00:08:05]Now, I went ahead and I plugged this into chat GPT, had them summarize it, and here we have the update. So, bottom line, the bill is very proclarity for crypto markets, but it is not a free-for-all. It tries to create a legal path where many network tokens can be traded as nonsecurities while still regulating token fundraising, insider sales, exchanges, and intermediaries, DeFi, control points, stable coins, banks, wallets, and illicit finance. It would take effect 360 days after the enactment or later for provisions that require rulemaking, which by the way is another big thing that I want you all to be aware of. The Clarity Act, once it does get signed into law, it does not immediately change things overnight.

[00:08:49]We have a 360day grace period. But looking at a few things here, we have the most important parts. Number one, network tokens can be treated as nonsecurities.

[00:08:58]The bill defines a network token as a digital commodity tied to a distributed ledger system whose value comes from the use and adoption of that system. It says a network token is treated as a non-security for federal securities law purposes unless it carries disqualifying financial rights like equity, debt, liquidation rights, dividends, profit sharing or similar rights against a person or company.

[00:09:20]So this is the heart of the bill. It separates the token itself from the investment contract used to sell it. The primary token sales can still be securities, but secondary trading gets clarity. I think that this is pretty straightforward. This is huge for exchanges, liquidity, and old coin markets because it aims to stop the every secondary trade is a securities trade argument. Then we have regulation crypto creates a token launch exemption.

[00:09:42]So projects could raise up to greater than 50 million per calendar year for up to four years or 10% of the total dollar value of outstanding accelerary um assets. So with a total market cap of 200 million under regulation crypto, they must provide disclosures before selling. This gives crypto projects a legal fundraising path without forcing every launch into a traditional IPO style securities framework. Heavy disclosure requirements for token issuers. So the bill is not you know no regulation is more like tokens may trade like commodities but issuers still have to disclose duties while you know they are raising money or remain influential.

[00:10:18]staking, liquid staking, and programmatic rewards get favorable treatment. This is bullish for proof ofstake ecosystems because it reduces the risk that normal staking rewards are automatically treated like securities offerings. Decentralization becomes a legal test. In plain English, the more open, permissionless, autonomous, and widely distributed a network is, the better its chance of being traded outside securities law it is. because again like this is the big problem with like most like DeFi related things. So this is a big one to focus on. Obviously it's a very vague um breakdown of exactly what's happening here with some of these decentralized ecosystems but insider and founder selling gets restricted. So this is meant to prevent founders and insiders from dumping on retail before a network is truly decentralized. I think that this is incredible. This part is awesome because we have seen so many projects come and go that are like, "Oh, hey, by the way, we're doing X, Y, and Z. Get in while you can." And then before the network actually has like, you know, full control given out, like fully like decentralized, we see dumping inside, which is just ridiculous. So, that's awesome. And then DeFi gets split into real DeFi versus control DeFi. So, good news for True DeFi. The bill says software coded distributed ledger systems themselves do not have to register just because they exist or launch but controlled interfaces and protocol operators may still get regulated. Now that one's a little tricky because you know what are we talking about here with like unis swap and like these you know uh dexes because that's the biggest problem. Um so again it's it's mainly they're they're looking at um I guess nondentralized platforms which would be fully regulated. So this could be good and bad for DeFi. It's hard to say because again some of the stuff is very vague within the within the bill. Um then we have strong software developer protections. This is one of the most important pro innovation parts. It tries to make clear that writing code does not equal running a financial intermediary. Self- custody is protected. So, keep your coins act section says that a federal agency may not prohibit, restrict, or impair a covered user's ability to self-custody digital assets with a self-hosted wallet for lawful purposes. That's awesome. Uh, banks get clear permission to use crypto rails, the biggest one. This is very important for institutional adoption because it gives banks a clear uh legal basis to touch crypto, which is awesome.

[00:12:42]That means that we could start to see custody, staking related custody services, customer buys and sells, digital asset collateralized loans, payments, nodes, wallet, software, brokerages, market making, and even certain principal activities that all banks can offer. And then stable co stable coin yield is restricted. So this is a big deal for stablecoin platforms.

[00:13:01]It protects banks from stable coins becoming yield bearing deposit competitors while still allowing some reward programs. And um you know, Coinbase already said that like this doesn't really affect what they're doing with stable coins. So, hey, we'll see what happens with this. I don't think that it's going to be a big blow to the crypto industry at all. Uh so, I'm not too concerned with that. Stronger AML and sanctions obligation. So, while this bill is pro market clarity, it is also very aggressive on illicit finance.

[00:13:29]Digital commodity brokers, dealers, and exchanges would face bank secrecy act style obligations, AML and CFT programs, risk assessments, internal controls, compliance officers, um employee training, independent audits, transaction records, suspicious activity monitoring, reporting, customer identification, customer due diligence, and OFAC sanctions compliance. So, if you have an exchange that is non KYC, forget about trying to access that exchange anymore because it will most likely get shut down. All exchanges now need to have strong AML and KYC restrictions. They need to make sure that they know every single one of their employees. Um, if you're looking for a nonKYC exchange, your best bet is looking at a DEX. So, exchanges going forward, if this gets signed into law and after that 360 grace period, um, you know, we're probably going to see every single exchange be fully KYCed. You're going to need a driver's license. you're going to need your, you know, um, you know, government ID, everything. So, that that definitely kind of kills a lot of the exchanges that are offering like nonKYC trading. Temporary holds on sus suspicious uh transactions. So, the initial hold could last up to 30 days with a possible extension up to 150 days. Uh so this is one of the more controversial parts because it gives intermediaries illegal protection when delaying transactions tied to suspected uh crime which this is definitely a little concerning because exchanges have uh frozen transactions in the past because of the amount. Um so this basically gives them fullon like green lights to pause and hold transactions for up to 30 days with an extension up to 150 days. So 180 days in total. Uh so this is definitely a rough one. And then of course customer assets get uh better bankruptcy protection which is awesome because this would prevent another FTX and Celsius style mess. So overall there's definitely a lot of great bullish parts to the bill. So to kind of summarize this secondary market token trades generally not treated as securities. Network tokens can be nonsecurities. Staking liquid staking get clearer treatment. Self- custody is protected. Software developers get legal protection. Banks get permission to offer cryptoreated services. Token issuers get a defined fundraising pathway. the most restricted parts.

[00:15:39]Insider and founder token sales face restrictions. Issuers must trade serious disclosure or must make serious disclosures. Um control DeFi can be regulated. Stable coin yield is limited.

[00:15:50]AML and sanctions compliance gets much much heavier. Suspicious transactions can be delayed by intermediaries. A lot depends on the future SEC, CFTC and Treasury rulemaking. So overall, you know, this is very bullish for, you know, the market. Um, but there's definitely a lot of things that this would affect in a negative way as well.

[00:16:08]My thought process on this is probably the best bill that we're going to get.

[00:16:13]Um, but we got to see what happens here and see if this is really going to get passed through or not. This upcoming week is definitely a crazy week for crypto. I mean, this week itself is just insane. Um, today, by the time that this does go live, we're going to see the CPI print for April. Um but tomorrow we get the PPI uh breakdown which you know this is who knows what's going to happen with this. I I feel like a lot of these numbers are going to be a little bit higher and then the next day on the 14th we do get the Senate Banking Committee markup of the Clarity Act scheduled. So this is a very important video to watch all the way through. I hope that you guys did um you know make it to this point because yes, the 14th is definitely going to be a big moment for the entire market. Looking at the bill, it does look like a pretty good bill. Uh but it's question on if we're going to get it passed through or not. I think that the fact that they snuck that housing market bill into the cryptoclarity act. I feel like that kind of gives us the confirmation that we're probably going to get this passed through. And then also on the 15th this week, Jerome Powell's term as the Fed share officially ends. So this is a pretty wild week. Um the market is just acting, you know, pretty I would say choppish. It's nothing too crazy. Like we're not really seeing anything move right now. Now, it's pretty boring price action. Um, and I think that it's going to be pretty boring until we start to see the outcome of what happens with the Clarity Act. Um, if we see any, you know, new news with the, uh, Iran war, because I know that we were starting to see that heating up throughout the, uh, weekend. But right now, things in the market just kind of look a little bit choppish. Uh, looks as though Bitcoin wants to go lower. And if we do get lower, then you know, I'm really kind of looking at like around $72,000 or so on Bitcoin, which, you know, should give us some nice discounts across the board for some old coins. So, with that being said, hope that you guys enjoyed this video. If you guys did, definitely like, subscribe, turn notifications on for more free content. You guys are more than welcome to follow me on Twitter and join the free Discord description below.

[00:18:05]And with that being said, guys, Nick, thanks for watching. Peace out, guys.