Are US Regulators Moving Toward Clear Legal Status for XRP and Solana?

Draft Senate bill may place XRP and Solana in the same regulatory category as Bitcoin and Ethereum under new guidelines

A draft Senate bill introduced this week proposes a change to how key cryptocurrencies are classified under US law.

The text circulated by the Senate Banking Committee suggests tokens such as XRP and Solana could receive the same legal standing as Bitcoin and Ethereum if certain conditions are met.

The measure aims to clarify federal treatment for digital assets that meet a specific criterion tied to exchange-traded products. This development comes as lawmakers and industry groups await formal markup of the proposal.

Draft Bill Defines Classification Standard

The draft provision would assign a “non-ancillary” legal status to tokens that were the principal asset of a registered exchange-traded product listed on a national securities exchange by January 1, 2026.

Tokens that meet this rule would not be treated as securities under federal law, aligning them with how Bitcoin and Ethereum are currently considered commodities.

XRP and Solana qualify under the listed criteria due to existing exchange-traded products that include these assets.

Under the draft language, digital assets designated as non-ancillary would not be subject to the same disclosure requirements imposed on securities.

This applies to XRP, Solana, Dogecoin, Litecoin, Hedera, and Chainlink, provided they satisfy the exchange-traded product condition.

The bill text identifies this classification as a means to streamline regulation based on market infrastructure rather than network decentralization tests.

Regulatory Context and Commentary

The Senate Banking Committee released the draft as part of broader efforts to establish federal crypto market structure legislation. Legal experts noted the shift from ambiguous enforcement standards toward a framework tied to listed financial products. This approach is expected to reduce uncertainty for issuers and institutional participants regarding how altcoins are treated.

Industry observers emphasize the draft’s focus on compliance pathways rather than immediate market effects. In removing the requirement for the classification of securities for qualifying assets, the bill aims for harmonization of treatment and current market practices. Objections have been raised that there are still some political impediments, and the final version may still evolve.

Next Steps in Legislative Process

Also scheduled is the markup of the proposed legislation by the Senate committee later in the week. It can be amended before it reaches the floor vote.

Analysts say the bill’s future is not clear because of the various priorities at play in the regulation of digital assets.

This proposal marks a notable effort to define legal status for prominent altcoins, potentially reshaping how regulators and markets interact with XRP, Solana, and other digital assets.