Expert Urges XRP Holders Not to Sell Ahead of Potential CLARITY Act-Driven Institutional Demand
Crypto commentator Finance Bull advised XRP holders against selling into the recent dip, citing Ripple CEO Brad Garlinghouse’s timeline that the U.S. CLARITY Act could advance in early 2026. Finance Bull argues the Act will force greater disclosure of Ripple’s escrow allocations (currently ~34–38 billion XRP) and that much of that supply is likely to be pre‑allocated to institutional use cases — bank settlement corridors, sovereign payment rails, cross‑border liquidity hubs and institutional custody — rather than dumped on open markets. This view implies regulatory clarity will convert perceived sell pressure into reserved, functional liquidity and prompt market repricing toward institutional absorption. The pundit also suggested large asset managers (e.g., BlackRock) could adopt XRP once legal certainty arrives. Separately, Ripple expanded its strategic partnership with TJM Investments to improve execution, clearing, capital and collateral efficiency via Ripple Prime and to support RLUSD and XRP utility. At publication XRP traded near $1.80, down ~4% over 24 hours. Traders should note this is opinion, not financial advice.
Bullish
The news is likely bullish for XRP over a medium to long-term horizon. Key drivers: (1) Expected regulatory clarity from the CLARITY Act (per Garlinghouse timeline) reduces legal uncertainty — a primary barrier for institutional entrants. (2) Disclosure and likely pre‑allocation of ~34–38B escrowed XRP toward bank corridors, sovereign rails and liquidity hubs would remove much perceived ‘overhang’ from the open market, lowering the probability of a sudden large sell-off. (3) Strategic partnership expansion with TJM Investments and possible interest from institutional managers (e.g., BlackRock) support real utility and demand pathways for XRP. Short term, price may remain volatile and react negatively to market dips or skeptical interpretation of escrow disclosures; traders should expect heightened event risk around regulatory milestones and escrow reporting. Over the medium/long term, increased institutional adoption and converted escrow supply into operational liquidity would be net demand-supportive, justifying a bullish classification for XRP price prospects.