Ripple's XRP Holdings Face 20% Cap Under US CLARITY Act

The CLARITY Act, which has cleared the Senate Banking Committee and sits on the Senate Legislative Calendar, would prohibit any single entity from holding more than 20% of a token’s total supply. Ripple currently controls roughly one‑third of XRP in escrow and holds additional tokens for operations, putting its total ownership well above the proposed limit. If the bill becomes law, Ripple would have twelve months to reduce its holdings through distributions, institutional deals or other mechanisms, potentially introducing billions of XRP into broader circulation.

The legislation also proposes shifting regulatory oversight of large tokens such as XRP from the SEC to the CFTC. This change would require exchanges, custodians and institutional investors to adopt new compliance workflows, affecting reporting, risk management and product definitions across the crypto market.