New filing hints at Ripple’s plan to dump over 1 billion XRP from escrow monthly

A filing with the Securities and Exchange Commission (SEC) suggests Ripple could release additional XRP from escrow if U.S. lawmakers pass the CLARITY Act.

The move could potentially allow more than the company’s typical monthly XRP supply to enter circulation.

The issue was highlighted by Australian lawyer and XRP supporter Bill Morgan in an X post on August 26 after he reviewed a registration statement for the Cryptex Digital Market Cap ETF.

The filing assigned XRP a portfolio weight of approximately 4.88% and includes language stating that Ripple could release additional XRP from escrow to support on-ledger liquidity for stablecoin and foreign exchange (FX) trading pairs if legislation such as the CLARITY Act is passed.

Morgan said he could not recall Ripple making such a statement and questioned the source of the information cited in the prospectus.

He added that if the filing is accurate, Ripple may be anticipating higher demand for XRP following the establishment of a clearer regulatory framework.

Ripple’s XRP escrow history

Notably, Ripple created its escrow system in December 2017, locking 55 billion XRP into time-based smart contracts on the XRP Ledger. Under the current structure, up to 1 billion XRP is released on the first day of each month.

However, Ripple has historically re-locked most of those tokens. In recent years, the company has typically returned between 60% and 80% of each monthly release back into new escrow contracts, resulting in a net increase in circulating supply of roughly 200 million to 400 million XRP per month.

The language in the SEC filing suggests Ripple could potentially retain a larger portion of future monthly releases rather than re-locking them if demand for XRP-based liquidity rises following regulatory changes.

In an extreme scenario, that could allow as much as the full 1 billion XRP monthly release to remain in circulation.

Historical XRP escrow unlocks have generally had a limited impact on price because the schedule is transparent and well known to market participants. Recent releases in July and August 2026 resulted in little lasting market disruption, with XRP remaining relatively stable after the unlock events.

Impact on XRP price 

A sustained increase in the amount of XRP entering circulation could change that dynamic. If Ripple begins releasing significantly more than the historical 200 million to 400 million XRP net monthly range, the additional supply could create downward pressure on price unless demand grows at a similar pace.

At the same time, the filing specifically links any potential increase in XRP releases to liquidity needs for stablecoin and FX transactions on the XRP Ledger.

If those additional tokens are used to facilitate higher transaction volumes and broader network activity, increased utility could help absorb the extra supply and support long-term demand for XRP.

The development comes as XRP continues to recover alongside broader cryptocurrency market strength. 

At press time, XRP was trading at $1.42, down more than 5% over the past 24 hours. Despite the pullback, the token remained up over 40% on the weekly chart, reflecting strong recent momentum.

Featured image via Shutterstock

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