As the Clarity Act edges closer to becoming law in early 2026, speculation is mounting over how Ripple will manage its XRP holdings, particularly those exceeding the 20% threshold. According to crypto analyst Zach Rector, historical trends suggest XRP is likely to see a significant price runup even before the legislation passes, echoing past patterns of “buy the rumor, sell the news.”
Ripple’s Escrow Holdings and Compliance Challenges
Ripple holds 34.4 billion XRP in escrow as of December 10, meaning it could potentially need to divest, transfer, or burn over 14 billion XRP to comply with the new rules. How this will be executed remains uncertain, with multiple strategies being discussed in the community.
Possible Approaches to Manage XRP Above 20%
Rumors highlighted by X account MackAttackXRP suggest several potential approaches for Ripple to manage its XRP holdings above the 20% threshold:
- Gradually selling excess XRP to large institutional buyers such as hedge funds or asset managers.
- Transferring control of certain escrow accounts to independent entities.
- Selling rights to future escrow releases without impacting the market.
- Less likely to burn some XRP to reduce supply and stabilize prices.
Another possibility is a controlled, long-term sale over several years, similar to Ripple’s current management of monthly 1 billion XRP releases. Insider reports also indicate that the roughly 1,700 escrow contracts created since 2017 may already be allocated to institutions, governments, or the IMF, with Ripple merely managing them. Once the Clarity Act passes, these contracts could be unveiled, potentially affecting market dynamics.
XRP Price Implications Ahead of Legislation
Rector emphasized that investors should not “tune out” until laws are passed. He noted that XRP already surged 650% in 2025, with major runups before presidential elections and ETF launches, illustrating that regulatory events often drive pre-emptive price movements.
“Waiting until the Clarity Act is signed could leave investors with significantly smaller gains,” Rector said.
Market Outlook for XRP Holders
As 2025 closes, XRP holders are watching both regulatory developments and potential market maneuvers by Ripple closely. The combination of legislative delays and speculative market strategies suggests that the next phase of XRP’s price action could be critical for both retail and institutional investors.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
The Clarity Act sets rules for crypto holdings. XRP over 20% may require Ripple to divest, transfer, or manage it differently.
XRP prices often rise before regulatory changes. Speculation and pre-emptive market moves could trigger a price runup.
Institutions may see it as an opportunity to secure large XRP allocations if Ripple redistributes holdings for compliance.
Likely yes. Major policy changes, market expectations, and rumors around Ripple’s strategy often increase price swings.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed