A significant draft bill from the U.S. Senate, referred to as the 'Clarity Act' by Chairman Tim Scott of the Senate Banking Committee, is poised to redefine the regulatory landscape for several prominent cryptocurrencies. The proposed legislation introduces a 'non-ancillary' asset classification for digital assets such as XRP, Solana, Dogecoin, Litecoin, Hedera, and Chainlink. This classification would effectively grant them a regulatory status akin to Bitcoin and Ethereum, exempting them from specific Securities and Exchange Commission (SEC) securities regulations. The core criterion for a token to achieve this 'non-ancillary' status is its inclusion as a principal asset in an exchange-traded product (ETP) listed on a national securities exchange as of January 1, 2026. This mechanism aims to establish a clear legal distinction between digital commodities and securities, thereby reducing years of regulatory uncertainty that have hindered institutional adoption and product development in the crypto space. Industry experts suggest that the primary impact of this bill would be on institutional compliance and broader market access, rather than immediate short-term price fluctuations. Beyond asset classification, the draft bill also incorporates other critical provisions. It addresses the contentious issue of staking rewards, defining them as 'gratuitous distributions' to prevent their classification as securities income. Furthermore, it includes provisions for decentralized finance (DeFi) safe harbors and mandates stringent reserve requirements for stablecoins, ensuring full backing and redeemability at par. While this draft represents a major step towards comprehensive crypto regulation in the U.S., its final passage remains subject to political developments and potential modifications. The initiative is seen as a move to integrate digital assets more clearly into the existing financial legal framework, benefiting investors, developers, and ETF issuers alike.