Ripple Escrow Uncertainty Sparks Debate Over CLARITY Act Impact
Cryptex Finance's proposed Digital Market Cap ETF has filed an amended registration statement with the SEC, assigning XRP a 4.88% fund weighting and discussing possible escrow releases.
The filing claims that Ripple could release additional XRP from escrow if Congress passes the CLARITY Act, but this assertion has raised questions as it is not confirmed by Ripple publicly.
Ripple's current XRP escrows cannot be released early due to the ledger's time locks, which prevent access before maturity. The company can, however, use some of the scheduled monthly releases and place the remaining portion into new escrow contracts with later release dates.