Here’s What Would Happen to Billions of XRP In Ripple Escrow If CLARITY Act Is Passed

The CLARITY Act is working its way through the U.S. Congress. This anticipated passage has triggered speculation about what it could mean for XRP.

Most of that conversation centers on regulation and price. But one post by crypto commentator LunaLuna takes the argument much further, all the way to the International Monetary Fund.

Ripple (XRP) Escrow: The 20% Threshold

LunaLuna’s argument starts with the bill itself. She pointed out that once the CLARITY Act passes, Ripple must hold less than 20% of XRP’s total supply for XRP to avoid classification as a security.

Significant control over an asset’s supply is one factor regulators weigh when making that determination. To bring its holdings below that ceiling, she argued, Ripple would transfer a portion of its XRP to the U.S. government.

Must Ripple Reduce its Escrow Holdings?

Notably, CryptoSensei, a prominent figure in the community, noted that the Senate’s CLARITY Act draft already contains a provision that may make the security question moot. Any crypto asset with a spot ETF live by January 1, 2026 automatically qualifies as a digital commodity, bypassing the standard “mature blockchain” certification entirely.

XRP spot ETFs launched in November 2025, meaning the asset would fall squarely within that provision.

The IMF Connection

U.S. government ownership of XRP is where LunaLuna’s theory turns toward international finance. She stated that the IMF can only adopt assets that a nation has first adopted. That ownership would satisfy the condition. From there, the IMF could gain standing to set XRP’s price, positioning it as a candidate for institutional reserve at the highest level.

Other commenters pushed back on this theory. One noted that the CLARITY Act contains no provisions for transferring assets to the government, targeting the foundation of LunaLuna’s chain. CryptoSensei also raised a technical point, stating that the IMF does not set prices for external assets.

Instead, it values the SDR using a basket of major fiat currencies, and XRP is not in that basket. Markets and sovereign policy determine XRP’s price, not an IMF directive.

SDR, E-SDR, and the Reserve Asset Framework

To understand LunaLuna’s proposal, the SDR matters. The Special Drawing Right is an IMF reserve asset created in 1969. It functions as a unit of account backed by five major currencies and supplements official national reserves.

The E-SDR is a proposed digital version built for modern payment infrastructure. LunaLuna positions XRP to fill that role, describing it as the new E-SDR. Commenters have identified potential gaps in her proposal. However, LunaLuna’s thesis shows how seriously the crypto community thinks about XRP’s potential role in global finance.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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