Crypto Bill Proposal Gives XRP, Solana, and Dogecoin Equal Legal Standing with Bitcoin

Senate Bill Draft Proposes Regulatory Relief for Leading Cryptocurrencies

A preliminary version of a significant U.S. Senate bill may offer substantial regulatory easing for major digital assets such as XRP, Solana, and Dogecoin. The proposal would place these cryptocurrencies in the same regulatory category as Bitcoin and Ethereum, according to documents circulating prior to the bill’s official unveiling.

Unveiled by Senate Banking Committee Chairman Tim Scott, the draft of the "Clarity Act" introduces a provision that would designate certain tokens as "non-ancillary" assets. This classification would exempt them from being treated as securities and free them from the Securities and Exchange Commission’s (SEC) disclosure rules.

ETF Status as a Pathway to Regulatory Clarity

The proposed legislation determines a token’s regulatory status based on its inclusion in regulated investment products. Specifically, the draft states that a token will be considered non-ancillary—and therefore not a security—if, as of January 1, 2026, it serves as the primary asset of an exchange-traded product (ETP) listed on a national securities exchange.

Given the current landscape of ETPs, this provision would extend to assets like XRP, Solana, Litecoin, Hedera, Dogecoin, and Chainlink. These tokens would gain a regulatory standing similar to that of Bitcoin and Ethereum from the date the bill takes effect.

According to experts speaking with Decrypt, the immediate consequences would be felt more in institutional participation than in short-term price movements.

While altcoins saw only modest gains following the release of the draft, Bitcoin hovered near $93,000, marking a 1.9% daily increase as reported by CoinGecko. On the prediction platform, operated by Decrypt’s parent company Dastan, users now estimate an 18% probability of an altcoin rally in the first quarter of the year, up from 16% earlier in the week.

Jordan Jefferson, founder of DogeOS, commented to Decrypt, “If this language remains in the final legislation, the most immediate effect will be on regulatory compliance rather than asset prices. A more defined legal framework could broaden the range of institutions able to participate in the market.”

Jamie Elkaleh, Chief Marketing Officer at Bitget Wallet, told Decrypt that the bill signals a broader move toward regulating digital assets based on their integration and use within regulated investment vehicles.

Joshua Chu, a legal expert and co-chair of the Hong Kong Web3 Association, added, “If the final bill maintains the ‘non-ancillary’ designation tied to ETFs, it could bring XRP, SOL, and DOGE into the same regulatory comfort zone that has encouraged institutional investment in BTC and ETH.”

Political Uncertainty Looms

However, Chu cautioned that the outcome of the bill remains uncertain due to the unpredictable nature of U.S. politics, especially with mid-term elections on the horizon.

Additional Provisions and Political Trade-Offs

The broader draft also highlights political compromises, including protections for software developers—a nod to DeFi advocates—and the notable exclusion of a controversial section regarding stablecoin interest payments.

This draft offers a clearer roadmap for how Congress might begin to establish formal regulatory boundaries for cryptocurrencies, with ETF eligibility emerging as a central criterion for legitimacy.

The bill faces its first significant hurdle soon, as the Senate Banking Committee is set to review and potentially revise the proposal during a markup session scheduled for Thursday.