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Ripple's Escrow Claim Raises Questions as XRP Price Fluctuates

Guavy AI Editorial Team
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XRP
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XRP's price has been fluctuating in recent days, trading near $1.40 and experiencing a -2.5% daily drop. However, a closer look at an ETF prospectus reveals that Ripple may have made a statement to regulators about releasing additional XRP from escrow, which could impact the asset's liquidity.

Australian lawyer Bill Morgan pointed out this detail in a registration statement for the Cryptex Digital Market Cap ETF filed with the SEC on August 25. The filing mentions that Ripple 'has indicated' it could release more XRP to support stablecoin and foreign-exchange pairs, but only if the CLARITY Act passes.

This development has raised questions among crypto lawyers about whether Ripple disclosed this information publicly before. Morgan expressed his surprise at finding this detail in the filing and asked where the drafters obtained it.

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