XRP Spikes to $1.55 After CLARITY Act Clears Senate Committee as Kevin Warsh Takes Over the Fed

Summary: The legislative catalyst identified in our May 12 analysis arrived on Thursday when the Senate Banking Committee advanced the CLARITY Act. XRP surged to an intraday high of $1.55 following the bipartisan 15-9 vote. This milestone marks the first time the digital commodity classification for XRP has moved toward becoming permanent federal law. However, the rally has encountered immediate resistance as the broader market prepares for a major policy shift. Today Jerome Powell officially steps down as Fed Chair. He is succeeded by Kevin Warsh whose hawkish reputation is currently weighing on risk assets. XRP is trading near $1.45 as it attempts to flip previous resistance into a sustainable floor.

Key Takeaways

• The CLARITY Act passed the Senate Banking Committee with a 15-9 vote on May 14.
• Democratic Senators Ruben Gallego and Angela Alsobrooks crossed party lines to support the bill.
• XRP broke above $1.50 for the first time in weeks but failed to hold the level on a 4H basis.
• Jerome Powell exits the Federal Reserve today with Kevin Warsh taking over as the new Chair.
• Cumulative XRP ETF inflows have reached $1.37 billion across seven providers since launching in November 2025, with total AUM sitting at $1.53 billion.
• The $1.45 level is the primary support zone while $1.50 remains the barrier for further upside.

The Legislative Path to July 4

The CLARITY Act has finally cleared its first major hurdle. By advancing through the Senate Banking Committee the bill avoids the looming threat of the May 21 Memorial Day recess, which lawmakers have warned could push the next viable legislative window to 2030, when a new Congress would need to restart the entire process.

This progress is essential because institutional asset managers remain hesitant to deploy capital based solely on interpretive releases. While the SEC and CFTC gave XRP the commodity nod on March 17 2026 institutional compliance teams require the statutory certainty that only the CLARITY Act provides.

The White House is currently targeting a July 4 signing window which leaves a tight six-week timeline for the Senate and House to reconcile their versions.

Macro Headwinds and the Warsh Transition

The bullish momentum from Washington is fighting a new reality at the Federal Reserve. Today marks the official end of the Powell era and the start of Kevin Warsh's tenure as Fed Chair.

Warsh has historically favored a more aggressive approach to inflation and balance sheet management. This change in leadership has introduced a layer of uncertainty and is affecting the crypto market prices.

The market is currently pricing in a more restrictive monetary environment under Warsh. This macro headwind is keeping institutional bids at bay despite the positive legislative news. Until the June FOMC meeting provides a clear look at the new policy direction the regulatory premium on XRP may continue to face downward pressure from the strengthening dollar and rising yields.

Technical Analysis and Key Levels

The 4H chart shows that XRP successfully tested the $1.50 resistance level but was rejected shortly after spiking to $1.55. This rejection confirms that the supply wall of break-even holders above $1.50 is still the major resistance for XRP.

Price is currently resting on the $1.45 support level which we have been eyeing this past week and did identify as the key breakout point in our previous report.

The $1.45 level must hold to keep the bullish structure intact. A failure here would suggest the committee news has been fully priced in and that the market is shifting its focus back to macro concerns. Below $1.45 the next meaningful support sits at $1.38 followed by a deeper liquidity pocket at $1.35.

On the upside a daily close above $1.50 would open the door for a retest of $1.55. The long-term objective remains the 200-day EMA near $1.80. Reaching that level likely requires the confirmation of a full Senate floor vote date before the May 21 recess.

Price has dipped briefly below $1.45 on an intraday basis, but what matters here is the 4H candle close. As long as those continue closing above $1.45, the bullish structure stays intact and the short-term targets remain valid.

What to Expect Next

• Bullish: XRP holds the $1.45 floor through the weekend and moves back toward $1.50. If Senate Majority Leader John Thune schedules the floor vote before next Thursday the path to $1.55 and $1.65 stays open.
• Bearish: The Warsh transition leads to a broader de-risking event. XRP loses $1.45 and slides back into the old range between $1.35 and $1.38. A lack of news regarding the Senate calendar would likely see price drift lower as the legislative window narrows.
• Invalidation: A daily close below $1.30 would break the structural floor and signal that the CLARITY Act narrative has failed to sustain investor interest.
• Key Catalyst: Senate Majority Leader John Thune scheduling the full Senate floor vote before the May 21 recess. Any public confirmation of a vote date this weekend would be the most direct signal for a move toward $1.55 and beyond.

What was the significance of the 15-9 vote?

It represents the first successful committee markup for a bill that would write XRP into federal law as a digital commodity. The inclusion of two Democrats provides the bipartisan momentum needed for a full floor vote.

Why did XRP pull back from $1.52?

The move hit a dense supply zone of sell orders at $1.5003. The pullback was further accelerated by the transition of Fed leadership today which has caused a temporary pause in risk asset accumulation.

Who is the new Fed Chair and why does it matter for crypto?

Kevin Warsh is the new Chair. His reputation for being hawkish on inflation suggests that the era of easy money is unlikely to return soon. This creates a challenging environment for all risk assets including XRP.

What are the most important price levels to watch this weekend?

The immediate levels are $1.45 for support and $1.50 for resistance. Traders should watch for a 4H close outside of this range to determine the next directional move.