XRP Regulatory Outlook: Senate Banking Committee Delays Crypto Market Structure Bill to 2026
The timeline for comprehensive U.S. cryptocurrency market structure legislation has been significantly extended, with the Senate Banking Committee now targeting early 2026 for formal markup of the bill. This development follows private meetings convened by Committee Chair Tim Scott (R-SC) with executives from major industry players including Ripple, Coinbase, Kraken, Chainlink, and venture firm Andreessen Horowitz (a16z). The postponement from the initially anticipated pre-holiday recess schedule reflects deepening partisan disputes and complex negotiations behind the scenes. For XRP and the broader digital asset ecosystem, this delay creates an extended period of regulatory uncertainty while simultaneously offering more time for industry advocacy and legislative refinement. The involvement of Ripple leadership in these high-level discussions signals continued engagement at the policy-making level, though the 2026 timeline pushes potential regulatory clarity well beyond the current market cycle. This legislative postponement may influence institutional adoption timelines and market strategies for XRP-related products and services operating within the United States.
Senate Banking Chair Delays Crypto Market Structure Bill to 2026 Amid Partisan Disputes
Senate Banking Chair Tim Scott (R-SC) convened private meetings with crypto executives from Coinbase, Kraken, Chainlink, a16z, and Ripple this week to refine legislation governing digital asset markets. The bill’s formal markup—initially expected before Congress’s holiday recess—has been postponed to early 2026, according to a committee spokesperson.
Behind-the-scenes negotiations reveal deepening partisan divides. Democrats insist on additional time to address anti-money laundering safeguards and DeFi oversight, while Republicans push for clearer yield-bearing asset rules. Senator Mark Warner (D-VA) acknowledged unresolved disagreements on fundamental provisions, noting lawmakers lack consensus even on legislative phrasing.
The delay follows earlier hearings with traditional finance CEOs, including Bank of America’s Brian Moynihan and Citigroup’s Jane Fraser, who urged harmonization between crypto and banking regulations. Market participants now brace for prolonged uncertainty as the 118th Congress winds down without decisive action.
XRP Traders Retreat as Leverage Hits Multi-Year Low
XRP’s derivatives market shows fading bullish conviction. The Estimated Leverage Ratio on Binance—a key metric for speculative activity—has plunged to 0.187, its lowest since November 2024. This contrasts sharply with the 0.59 reading during July 2025’s rally.
The decline signals eroding trader confidence. CryptoQuant data reveals shrinking borrowed capital against exchange reserves, suggesting reduced position openings or outright avoidance. XRP’s price stagnation mirrors this withdrawal of leverage-fueled demand.
CME Expands Crypto Derivatives with Spot-Quoted XRP Futures
CME Group has launched spot-quoted XRP futures contracts, marking another institutional milestone for the sixth-largest cryptocurrency by market capitalization. The derivatives exchange now offers these products alongside SOL futures, complementing existing Bitcoin and Ethereum contracts.
Open interest in XRP futures reached $1 billion faster than any previous contract on CME, prompting the October introduction of options trading. The new spot-quoted structure allows institutional investors to hedge positions using familiar spot-market terminology while benefiting from extended settlement timelines.
This development follows growing demand for regulated crypto derivatives, particularly after CME's XRP futures went live earlier this year. Market participants anticipate increased liquidity and tighter spreads as the product gains traction among traditional finance institutions.
Analyst Predicts XRP Rally to $5.85 After Accurate $1.88 Crash Forecast
Dark Defender, a crypto analyst who accurately predicted XRP's drop to $1.88 earlier this year, now sets a $5.85 price target. The forecast relies on Elliott Wave theory, with Wave 4 completing NEAR the $1.88 support level. This positions XRP for a potential 200% rally in Wave 5.
The analyst's wave analysis tracked XRP's monthly patterns since February 2025, noting Wave A bottomed at $1.60 in April before Wave B climbed to $3.66 in July. The final corrective leg (Wave C) confirmed the $1.88 support as the Wave 4 floor.
Defender asserts market narratives will shift as BTC dominance weakens: 'People who say the bear market has started will switch and can't believe the market behavior shortly after BTC.D loses strength.' The analysis suggests XRP's technical structure aligns with historical wave progression patterns during volatile markets.
