[DigitalToday reporter Seung-a Yoo] Ripple (XRP) fell the most among major cryptocurrencies just after a U.S. Senate crypto market structure bill failed to advance.

On Sept. 16 (local time), blockchain media outlet Decrypt reported that XRP fell 7.71 percent over the past 24 hours, dropping below $1.30.

The decline came just after the U.S. Senate failed to pass a vote needed to enter full consideration of the Digital Asset Market Clarity Act, known as the "Clarity bill". In the Senate vote to end debate on the bill, there were 49 votes in favour and 50 against. As a result, the bill did not secure the 60 votes needed to move to full consideration.

Selling pressure also appeared across the broader crypto market, but XRP's drop was relatively large. Among the top 10 cryptocurrencies by market value, XRP recorded the biggest decline over 24 hours, while Solana fell 3.91 percent over the same period.

XRP traded near $1.40 before the Senate vote but later slipped to as low as $1.29. Its market value fell to about $81.34 billion and it ranked fifth by market value. Separate price data as of Sept. 16 also put XRP at $1.29, down 7.71 percent over 24 hours.

The market is focusing on why XRP fell more sharply than other major cryptocurrencies. That is because XRP is an asset that has received a relatively clear ruling in the United States on the token's legal status.

In a lawsuit between the U.S. Securities and Exchange Commission and Ripple, the U.S. District Court for the Southern District of New York ruled in 2023 that XRP itself is not inherently a security. The court, however, distinguished between the token itself and sales methods, ruling that certain direct sales by Ripple amounted to unregistered securities sales under securities law. The appeal process in the case has since ended, leaving the ruling in place.

That has raised market interest in why the price fell more sharply just after progress on the Clarity bill was blocked, if XRP has already secured substantial legal clarity.

One possible explanation is that, separate from the token's legal status, XRP could benefit significantly from a broad overhaul of the U.S. digital asset regulatory framework.

The Clarity bill aims not only to determine whether individual cryptocurrencies are securities but also to establish a regulatory framework for the overall U.S. digital asset market. If the bill passes, regulatory uncertainty in the digital asset market, including XRP, could fall.

Conditions for market entry by institutional investors and financial firms are particularly important. Clearer regulatory standards for digital assets could reduce uncertainty for institutions and financial firms when they participate in the market. With institutional interest continuing in XRP and its underlying technology, expectations for such policy changes may have been reflected in the price, according to the explanation.

Ultimately, the Senate vote result may have weakened, at least for the time being, expectations for expanded institutional participation through broad regulatory reform. That factor may have translated into stronger selling pressure on XRP than on other major cryptocurrencies.

Still, this decline alone does not allow a definitive conclusion about XRP's future price trend. If the Clarity bill makes progress again, XRP could still be influenced by an improved regulatory environment. Actual prices can be affected by various factors, including overall crypto market conditions, investor positioning and institutional demand.