XRP Meets Clarity Act Maturity Framework Requirements, Lawyer Claims

A lawyer has argued that XRP meets the Clarity Act's maturity framework requirements, which goes beyond its 20% ownership threshold. The CLARITY Act's framework stipulates that no issuer or affiliated person beneficially owns 20% or more of a digital commodity.

The lawyer pointed to alternative provisions in the legislation that could be relevant to XRP. Specifically, they argued that since more than half of its total supply has been distributed outside Ripple and related parties, XRP could potentially satisfy this test.

If accepted, XRP Ledger could end up qualifying under the pre-existing-system provision. Additionally, there's a separate provision involving exchange-traded products in the Senate draft, which contains a cutoff for certain network tokens with ETFs on a national securities exchange. XRP could potentially benefit from this provision as well.

The Clarity Act distinguishes between a digital commodity and investment contracts involving that commodity. This means that failing to qualify as a mature blockchain would not necessarily mean XRP itself becomes a security in every transaction.