#CLARITY_ACT
The impact of the Clarity Act on Ripple's XRP holdings is profound. The act's "20% test" could force Ripple to sell or reorganize a significant portion of its XRP, especially if the holdings of Ripple insiders and affiliates exceed this threshold.
There areseveral strategic choices Ripple might consider to comply with these regulations:
Maintaining current monthly XRP unlocks .
Aggressively re-escrowing XRP to reduce circulation .
Intentionally burning XRP to permanently decrease the total supply .
Structured distributions through institutional custody solutions or ETFs .
Public or third-party escrow, potentially involving governmental oversight ).
The recent recognition of Ripple's RLUSD stablecoin by Dubai's DFSA is another major move). This approval, alongside Circle's USDC and EURC, signifies a shift towards a criteria-based regulatory system in Dubai, allowing financial institutions to use RLUSD for various operations within the Dubai International Financial Center.
Finally, the increasing institutional adoption of cryptocurrencies in the US, citing Morgan Stanley's move to offer Bitcoin ETFs to high-net-worth clients. Significant influx of capital into XRP ETFs and the asset's high trading volume, suggesting a shift from speculative instrument to a useful rail in global financial system.
The future financial system will be multi-ledger and multi-currency, with regulation and infrastructure readiness being key drivers of institutional movement .