SEC Filing Suggests Ripple Could Unlock More Escrowed XRP If CLARITY Act Passes

A recent filing with the U.S. Securities and Exchange Commission (SEC) indicates that Ripple might release additional $XRP from its escrow accounts if Congress passes the CLARITY Act. The disclosure, part of the registration statement for the Cryptex Digital Market Cap ETF, has drawn attention from legal experts and $XRP holders, who see it as a potential signal of increased supply under a clearer regulatory framework.

What the SEC Filing Says

The filing, which allocates approximately 4.88% of the ETF’s portfolio to $XRP, includes language suggesting that Ripple could unlock more $XRP from escrow to support on-ledger liquidity for stablecoin and foreign exchange trading pairs, should the CLARITY Act become law. The CLARITY Act, short for the Crypto Legal Clarity Act, aims to provide regulatory certainty for digital assets by defining which tokens are securities and which are commodities.

Australian lawyer and $XRP advocate Bill Morgan highlighted this language on X (formerly Twitter) on August 26, noting that he had not previously seen Ripple make such a statement. Morgan questioned the source of the information in the prospectus, but added that if accurate, Ripple may be positioning for a surge in $XRP demand once a clear regulatory framework is established.