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CLARITY Act’s 20% Cap Puts XRP’s Path to Commodity Treatment Under Scrutiny

Ripple’s roughly 40% escrow stake means any compliance effort would be gradual rather than forced.

Overview

  • The Digital Asset Market Clarity Act remains a proposal, yet it is shaping expectations for U.S. crypto asset classification.
  • The draft uses a measurable decentralization test that withholds “mature network” status when a single entity or coordinated group controls 20% or more of supply.
  • Ripple currently controls about 40% of XRP via escrow, releasing 1 billion tokens monthly and historically re-escrowing roughly 70% of those releases.
  • If passed as described, the bill would not mandate sales or transfers of Ripple’s holdings, allowing time for tactical approaches to reduce concentration.
  • During the regulatory wait, some XRP holders are using structured-yield options like SolStaking to seek predictable returns without relying on price moves.