Ripple faces a potential requirement to divest more than 14 billion XRP to comply with the U.S. Digital Asset Market Clarity Act of 2025. The act, which aims to prevent concentrated ownership in blockchain systems, sets a 20% holding limit for entities to qualify their tokens as commodities. Ripple currently holds over 34.4 billion XRP in escrow, exceeding this threshold.
Community discussions have speculated on possible compliance strategies, including gradual sales, token burns, or transferring control to external entities. However, Ripple CTO David Schwartz has dismissed the idea of burning tokens. The bill is under review in the U.S. Senate, and its outcome could significantly impact Ripple's operations.
Ripple May Need to Divest Over 14 Billion XRP to Comply with U.S. Act
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