• UnknowDLT means that Ripple might be required to scale back its stake to lower than 20% beneath the provisions of the CLARITY Act.
• Ripple at present controls about 42-50% of XRP’s whole provide of 100 billion tokens.
• The CLARITY Act, handed in July, establishes a 20% threshold for product classification.

Crypto analyst UnknowDLT shared a idea linking the potential for XRP being categorized as an digital particular drawing proper to Ripple’s token holdings. Analysts counsel that after the CLARITY Act is authorized, Ripple might want to maintain lower than 20% of the availability of XRP to keep away from security classification.

In response to UnknowDLT, Ripple might switch a few of its holdings to the US authorities to attain compliance. Analysts argue that this may enable the Worldwide Financial Fund to set the value of XRP, because the IMF can solely undertake belongings that international locations first undertake. “XRP is the brand new E-SDR,” mentioned the analyst. He additionally predicted that if this state of affairs materialized, costs would “explode on the identical day.”

CLARITY Act units limits on possession rights

The Digital Asset Market Transparency Act of 2025 was handed by the U.S. Home of Representatives on July 17, 2025. The regulation establishes standards for digital belongings to qualify as “digital merchandise” beneath the jurisdiction of the CFTC, fairly than as securities beneath the supervision of the SEC.

A key factor to reaching the standing of a “mature blockchain system” consists of limiting possession focus. The regulation states that for a token to be categorized as a mature digital product system, “the digital product issuer, digital product affiliate, or digital product affiliate doesn’t collectively beneficially personal 20 p.c or extra of the full quantity of models.”

This 20% threshold is meant to stop over-centralization and guarantee decentralized management on the blockchain community. Ripple Labs at present holds about 45-50% of the full XRP provide of $100 billion in escrow accounts and operational wallets.

Ripple’s escrow account accommodates 40-45% of its provide, with roughly 35-40 billion XRP locked in escrow. Treasury and operational wallets maintain a further 5-6% of the availability. In whole, Ripple controls about 42-50% of the full provide, far exceeding the 20% threshold beneath the CLARITY Act.

UnknowDLT’s idea means that by transferring its holdings to scale back Ripple’s possession to lower than 20%, XRP might qualify for IMF adoption as an digital particular drawing proper. Analysts predict this growth will result in a flood of capital into XRP as buyers transfer their speculative belongings into the token.

Particular Drawing Rights at present function an IMF reserve asset based mostly on a basket of currencies together with the US greenback, euro, Chinese language yuan, Japanese yen, and British pound. The idea of digital or digital SDRs has been mentioned within the worldwide monetary neighborhood as central banks take into account digital forex frameworks.

Whether or not the corporate will voluntarily scale back its possession ratio to lower than 20% stays a matter of hypothesis. Such a transfer would require the switch of roughly 22 billion to 30 billion XRP, relying on the precise quantity held at present.

Associated: https://currencyjournals.com/ripple-cto-strikes-back-after-analyst-says-xrp-has-no-real-use/