Ripple May Unlock More Than 1 Billion XRP If US Lawmakers Pass CLARITY Act

A recent filing with the Securities and Exchange Commission (SEC) may indicate Ripple's plan to release more XRP from escrow if U.S. lawmakers pass the CLARITY Act.

The filing, which pertains to the Cryptex Digital Market Cap ETF, states that Ripple could release additional XRP to support liquidity for stablecoin and foreign exchange trading pairs if legislation such as the CLARITY Act is passed.

Ripple's current escrow system, established in December 2017, locks 55 billion XRP into time-based smart contracts on the XRP Ledger. Typically, up to 1 billion XRP is released each month, with most of it being re-locked back into new escrow contracts.

However, if demand for XRP increases due to regulatory changes, Ripple may retain a larger portion of future monthly releases, potentially allowing as much as the full 1 billion XRP release to remain in circulation.