Ripple May Release More XRP if CLARITY Act Passes

A new SEC filing has sparked intrigue in the XRP community, suggesting that Ripple may release more XRP from escrow if the CLARITY Act passes. The registration documents for the Cryptex Digital Market Cap ETF filed with the SEC contain wording that implies Ripple may direct 'additional XRP from escrow' towards supporting liquidity for stablecoins and currency pairs.

The 4.88% allocation of $XRP in the ETF's fund weight has led some to speculate about the potential increase in XRP supply. However, experts agree that this is likely a market-based maneuver rather than a disruption to the escrow system.

Ripple currently unlocks 1 billion XRP every month but returns 60% to 80% of the unused amount to escrow. If the CLARITY Act is passed and institutional demand grows, Ripple could simply stop returning the unused tokens, leaving the full monthly 1 billion XRP in circulation.