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.
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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.
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