An interpretation has emerged that the U.S. Clarity Act’s 20 percent threshold of total supply is not a provision requiring Ripple to forcibly sell XRP.

The Crypto Basic, a blockchain outlet, reported on April 4 that even if the bill passes, it is hard to conclude that Ripple must dispose of escrowed holdings solely for compliance, citing analysis by the AI tool Grok.

The key issue is the nature of the 20 percent threshold. Grok did not view the figure as a strict ceiling that forces sales. Instead, it said the figure is closer to one of several factors considered when determining whether a blockchain system qualifies as a “mature system.”

It was also noted that the bill’s concept of “maturity” is not determined solely by token concentration. The assessment can include multiple conditions such as the level of decentralisation, open-source infrastructure and practical utility. As a result, holding more than 20 percent could fuel controversy over control, but the structure does not automatically create an obligation to sell or burn tokens. This differs from earlier concerns that Ripple could have to sell more than 14 billion XRP from escrow.

Grok’s interpretation also rests on the premise that XRP’s regulatory classification would change. If XRP is recognised as a “digital commodity”, oversight would shift from the U.S. Securities and Exchange Commission to the Commodity Futures Trading Commission, and regulatory pressure based solely on holding concentration could ease. It also said that if certified as a mature system, lighter compliance obligations could apply, rules for secondary trading could become clearer and protections for DeFi and self-custody could be strengthened.

On the procedural side, the bill was interpreted as allowing flexibility rather than fixating on a single figure. Projects can explain for themselves that they meet the maturity requirements, and even if regulators review or challenge that, they make an overall judgement that considers the “total circumstances.” The analysis also raised the possibility that guidelines could be adjusted if needed, and that a certain period and a safe harbour could be provided while decentralisation progresses.

This view directly ties into the debate over Ripple’s escrow holdings. Ripple holds more than 33.5 billion XRP in escrow, and when combined with 5 billion XRP in usable wallets the total is 38.5 billion, close to about 40 percent of total supply. Options such as large institutional sales, escrow restructuring and token burns have been discussed, but under Grok’s interpretation it is difficult to conclude such measures are “necessary” solely as a response to the bill.

According to Grok, Ripple should not be subject to sell off the XRP escrow to meet the 20% threshold rule in the Clarity Act once it is passed because XRP already has a commodity designation. https://t.co/ENW3PBbQan