XRP Ledger Proposes Four Fixes for Restricted Tokens

| cryptobriefing.com
XRP Ledger developers have proposed four protocol changes, bundled in the fixCleanup3_5_0 amendment, to close loopholes that could let restricted tokens reach accounts without issuer approval. The fixes cover trust-line and transaction checks, as well as automated market maker (AMM) pools: accounts would need approval for both pool assets before receiving liquidity provider tokens, and unauthorized trust lines already holding tokens could not receive more. Unapproved holders would generally be able to return restricted tokens to the issuer, which could authorize them later. The changes do not affect XRP or require approval to hold it. The amendment has not yet been merged into the main XRP Ledger software, and activation requires more than 80% support from trusted validators for two consecutive weeks; no activation date has been set. The XRP Ledger Foundation calls the work routine protocol hardening and reports no known outside exploitation or user losses. The proposal follows a 2025 fix for an NFT-related loophole. For XRP traders, the changes could strengthen issuer controls for regulated stablecoins and tokenized assets, but they do not directly alter XRP’s utility or supply.
Neutral
The proposal is primarily a security and compliance update for issued assets on the XRP Ledger, not a change to XRP itself. It introduces no approval requirement for holding XRP and does not directly alter XRP’s supply, transaction mechanics, or demand. As a result, the direct short-term price impact is likely limited; traders may view the news positively for network reliability, but protocol proposals without an activation date often have little immediate effect unless they materially change usage or fees. In the longer term, stronger issuer controls could support confidence in regulated stablecoins and tokenized assets on the XRP Ledger, potentially benefiting the ecosystem. Any indirect effect on XRP would depend on adoption and resulting network activity. The amendment is not yet merged and needs more than 80% validator support for two consecutive weeks, so uncertainty about timing further limits near-term market implications. There are no reported losses or known exploitation cases to suggest an immediate market-stability concern.