By Syed Mubashir Crypto
U.S. lawmakers are pushing forward with the proposed Clarity Act, reviving discussions around Ripple’s $XRP holdings and whether the company would be required to divest a portion of its supply. The bill introduces a key condition: any entity closely linked to a crypto project must hold less than 20% of the total token supply for that asset to qualify as a commodity.
At present, Ripple controls over 30% of XRP’s total supply, including more than 34 billion XRP held in escrow. This has led many analysts to believe Ripple may face difficult choices if the legislation advances.
Crypto commentator Brad Kimes of Digital Perspectives argues that Ripple would need to reduce its holdings below the 20% threshold. He even suggested that Ripple could transfer some XRP to the U.S. government without compensation to meet regulatory requirements without market disruption. However, this idea remains speculative.
Kimes later added that the issue could disappear if Ripple successfully becomes a regulated U.S. bank. According to his view, a national bank charter could place Ripple under a different regulatory framework, potentially removing the need to divest XRP. So far, regulators have not confirmed this interpretation.
In July 2025, Ripple applied to the Office of the Comptroller of the Currency to establish Ripple National Trust Bank and requested a Federal Reserve master account. This would allow direct access to Fed payment systems and support 24/7 issuance and redemption of RLUSD.
If approved, institutional confidence could surge. XRP could reach $50 in an extremely bullish scenario, driven by regulatory clarity and increased institutional adoption.
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