A recent post by Versan Aljarrah, founder of Black Swan Capitalist, focused on the Digital Asset Market Clarity Act and its potential implications for XRP.
Aljarrah highlighted that once Ripple’s XRP holdings fall below the ownership threshold set by the Act, a significant regulatory shift could occur—potentially freeing the digital asset from securities risk and opening the door to wider institutional and sovereign-level adoption.
The Clarity Act, which seeks to distinguish between securities and digital commodities, establishes a clear ownership cap for issuers and affiliated entities.
Under the proposed framework, a digital asset qualifies as a commodity under Commodity Futures Trading Commission (CFTC) oversight if its issuer and affiliates collectively hold less than 20% of the asset’s total circulating supply. This threshold aims to ensure decentralization and prevent undue control by a single entity or issuer.
When @Ripple’s XRP holdings drop below Clarity Act limits, the game changes.
Institutions and sovereigns can hold #XRP freely, no securities risk, no political scrutiny. Global adoption is about to accelerate. https://t.co/rhYyVymWp1
— Black Swan Capitalist (@VersanAljarrah) November 2, 2025
Ripple’s Escrow and the Path to Compliance
An important consideration raised by community members is the inclusion of escrowed XRP within Ripple’s total holdings. One commenter, identified as Invested, noted that the Clarity Act’s ownership calculation would include tokens held in escrow accounts.
This means that Ripple would likely need to release or divest a significant portion of its escrowed XRP before meeting the decentralization standards outlined in the legislation. Ripple currently holds billions of XRP in time-locked escrow accounts, originally designed to provide transparency and predictability to the asset’s supply schedule.
Another observer, Haik Sahakyan, suggested that based on the current escrow release schedule, Ripple’s ownership percentage could fall below the Clarity Act’s 20% threshold as early as 2028. However, Sahakyan also acknowledged the possibility that certain market or operational developments could accelerate this process, potentially bringing the firm into compliance sooner.
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Potential Market Impact
If Ripple’s holdings were to drop below the Clarity Act’s defined limits, the implications for XRP could be significant. The asset would likely be viewed as a decentralized digital commodity, removing lingering securities concerns and reducing associated political and regulatory risks.
This clarity could make XRP a more attractive option for institutional investors, sovereign entities, and global payment networks seeking a compliant, liquid settlement asset.
While the path to regulatory compliance may depend on the pace of Ripple’s escrow releases and market dynamics, the conversation initiated by Aljarrah underscores a pivotal moment for XRP.
The Clarity Act offers a clear framework that could redefine how the asset is perceived and utilized once the ownership structure aligns with the thresholds required for digital commodity classification.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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