Ripple's Escrow Reserve Claim Sparks SEC Filing Questions

Ripple's recent filing with the SEC has raised questions about its escrow reserves. The company may release additional XRP from escrow to support on-ledger liquidity for stablecoin and foreign-exchange pairs, but only if the CLARITY Act passes.

The information was buried in a routine ETF prospectus filed by Cryptex Digital Market Cap on August 25, which assigns XRP a portfolio weight of around 4.88%. Australian lawyer Bill Morgan flagged the detail while reviewing the filing.

XRP is currently trading near $1.40, down roughly -2.5% on the day, but up over +27% in the past seven days. The asset's price action has been range-bound between $1.28 and $1.41, with support at $1.00.

The moving averages tell an unflattering story for XRP, trading below both its 50-day (~$1.21) and 200-day (~$1.37) simple moving averages, a death-cross setup that typically signals lingering downside pressure in the absence of a fresh catalyst.