A pre-effective amendment filed with the SEC by the Cryptex Digital Market Cap ETF states that Ripple has indicated it may release additional XRP from escrow if regulatory clarity is established, naming passage of the CLARITY Act as an example. The filing gives XRP a 4.36% index weight and a 4.88% weight in the fund itself.
What the Filing Says
The sentence appears in the prospectus section on XRP supply concentration and affiliated-party risk. It states that the company has indicated that, if regulatory clarity is established via passage of the CLARITY Act, it may release additional XRP from escrow to support on-ledger liquidity in stablecoin and FX pairs.
The filing provides no citation, no date, and no source for that assertion. Ripple has made no equivalent public statement, and the language does not appear in the company’s quarterly XRP Markets Reports.
The document is a disclosure prepared by Cryptex Finance, LLC, sponsor of the proposed fund. It is not an SEC finding and not a Ripple announcement. The SEC has not approved the registration statement; the filing is Pre-Effective Amendment No. 3, and the prospectus is marked subject to completion.
Attorney Bill Morgan, who surfaced the passage, said he did not recall any Ripple statement to that effect and questioned where the information came from.
The Escrow Cannot Be Unlocked Early
XRP Ledger escrows are time-locked at the protocol level. An EscrowFinish transaction cannot execute before the specified time, and no party—including Ripple—can accelerate it. On that mechanical reading, releasing additional XRP from escrow is not something the passage of a US statute could enable.
The more plausible interpretation concerns what happens after each scheduled release. The same filing states that Ripple typically re-locks 60% to 80% of each monthly release and that historical net releases have averaged 200 million to 300 million XRP per month against a 1 billion monthly cap.
Distributing a larger share of that 1 billion, rather than returning it to escrow, would increase circulating supply without requiring any early unlock. Morgan reached the same reading, noting Ripple returns roughly 700 million XRP to escrow in most months.
The filing itself describes the monthly releases as the single largest structural supply event in any major digital asset and elsewhere warns that sales of newly released XRP may cause prices to decline.
Where the CLARITY Act Stands
The Digital Asset Market Clarity Act cleared the Senate Banking Committee 15-9 on May 14 and was placed on the Senate legislative calendar on June 1, making it eligible for a floor vote. It requires 60 votes to overcome a filibuster.
President Trump called on Congress to pass the bill at a White House meeting on August 19, attended by SEC Chairman Paul Atkins, CFTC Chairman Michael Selig, and executives including Ripple CEO Brad Garlinghouse. Trump asked for what he described as a fair version of the legislation without specifying which provisions he meant, leaving the shape of a final bill unresolved.
Administrative clarity already exists in part: the SEC and CFTC issued a joint interpretive release classifying 16 tokens, including XRP, as digital commodities, and Ripple’s litigation with the SEC concluded in August 2025.
That last point matters for reading the filing’s claim. The prospectus conditions the escrow statement on regulatory clarity being established. XRP already holds a digital commodity classification administratively, which raises the question of what additional clarity passage would supply—a question the filing does not address.
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