Pundit Says This Crypto Bill Is a Big Win for Ripple and XRP If Passed

A potentially groundbreaking piece of legislation currently making its way through the U.S. Congress could mark a decisive shift in how digital asset projects are evaluated for regulatory purposes, and Ripple stands to benefit significantly. As pointed out by Jungle Inc Crypto News on X, the Financial Innovation and Technology for the 21st Century Act (FIT21) includes a provision that may redefine how insider holdings are assessed, with major implications for XRP’s legal classification.Big Win for Ripple if Passed FIT21 bill explicitly excludes tokens held in contractually locked or escrowed accounts from the insider holdings calculation.Under the bill’s Section 102, which covers digital asset issuer disclosure obligations, a digital asset is presumed to... https://t.co/ho737hXBuy— Jungle Inc Crypto News (@jungleincxrp) May 5, 2025FIT21 and the Decentralization StandardFIT21, one of the most comprehensive crypto bills ever proposed in the United States, introduces a structured framework for digital asset regulation, particularly focusing on asset classification and issuer responsibilities. Among the most consequential sections is Section 102, which outlines the criteria for assessing whether a digital asset can be considered decentralized. Under this section, if no affiliated party controls 20% or more of the asset’s circulating supply, the token is presumed decentralized, placing it outside the scope of securities law.Crucially, the bill includes language that could ease regulatory burdens for projects like Ripple. It explicitly states that assets held in contractual restrictions, such as escrow or vesting schedules, are to be excluded from the 20% insider holdings calculation. The text reads: “The number of digital asset units owned by affiliated persons does not include digital assets that are subject to contractual restrictions, including those in escrow or subject to vesting schedules.”Why This Matters for Ripple and XRPRipple currently holds over 40 billion XRP in time-locked escrow accounts—a central talking point in past legal and regulatory discussions regarding the company’s influence over the token. Critics have frequently argued that this large holding undermines XRP’s decentralization and keeps Ripple in control of the asset’s supply.However, under FIT21’s revised methodology, those escrowed tokens would not count toward Ripple’s insider ownership. This exclusion would drop Ripple’s effective stake well below the 20% threshold, bolstering XRP’s case to be treated as a decentralized commodity rather than a security.That distinction is critical. If XRP qualifies as a decentralized asset, it may fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the Securities and Exchange Commission (SEC). Such a classification would offer much-needed regulatory clarity and could effectively neutralize several of the claims still lingering from the years-long SEC vs. Ripple lawsuit.We are on twitter, follow us to connect with us :- @TimesTabloid1— TimesTabloid (@TimesTabloid1) July 15, 2023A Path to Legal Clarity and Market ConfidenceFor Ripple, the passage of FIT21 would not just validate its ongoing legal strategy—it could cement XRP’s status as a compliant, tradable asset under U.S. law. It would also reinforce Ripple’s argument that the escrowed XRP has always been responsibly managed and transparently disclosed.Investors and market participants are watching this development closely. With bipartisan momentum building behind comprehensive crypto legislation and growing recognition of blockchain’s role in the future of finance, the timing for FIT21 could be pivotal. If passed, this bill would not only set a precedent for token decentralization criteria but could also unleash a wave of institutional interest in XRP and similar assets.As Jungle Inc Crypto News notes, the FIT21 bill offers more than just regulatory reform—it offers a lifeline to Ripple and XRP amid years of legal uncertainty. By excluding escrowed tokens from insider calculations, lawmakers are acknowledging the structural safeguards that responsible crypto projects have put in place. For Ripple, it could mark the beginning of a new chapter—one driven by compliance, clarity, and confident market participation.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 urged to do in-depth 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.Follow us on Twitter, Facebook, Telegram, and Google News The post Pundit Says This Crypto Bill Is a Big Win for Ripple and XRP If Passed appeared first on Times Tabloid.