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X Finance Bull, a widely followed figure in the XRP community, has cautioned holders against selling XRP at current levels.
According to him, the market is overlooking a major regulatory milestone that could reshape XRP’s long-term supply dynamics.
He referenced comments from Ripple CEO Brad Garlinghouse, who previously suggested that the U.S. CLARITY Act could pass in the first half of 2026. In X Finance Bull’s view, this is no longer mere speculation but a timeline the market should be preparing for.
Why the CLARITY Act Matters for XRP
The analyst stressed that once the CLARITY Act passes, Ripple may need to formally clarify the future of the 34.4 billion XRP still held in escrow. Rather than this supply hitting the open market, he believes Ripple’s strategy will differ significantly from what many investors fear.
Instead of selling into the market, X Finance Bull argues that the escrowed XRP is likely to be pre-allocated for specific, large-scale use cases tied to global finance.
Escrow XRP as Infrastructure, Not Selling Pressure
According to his analysis, XRP in escrow could be intended for allocation across:
- Banking corridors
- Sovereign payment rails involving governments and central banks
- Liquidity hubs supporting G20 cross-border settlements
- Institutional frameworks linked to entities such as the IMF and BIS
- National payment systems integrating next-generation rails
From this perspective, what many see as potential “overhead supply” could already be effectively earmarked.
Locked Liquidity, Not a Market Dump
Furthermore, X Finance Bull stressed that investor anxiety over a massive selloff may be misplaced. In his view, the more likely outcome is that the locked tokens flow into banks, foreign-exchange routes, and regulated custody systems rather than being dumped on exchanges.
He sees this potential outcome as embedding XRP into the core infrastructure of global financial systems.
Repricing Moment Ahead
The analyst concluded that once Ripple publishes an official escrow roadmap, the market reaction could be swift. He suggested that clarity around allocation and utility could trigger a rapid, demand-driven repricing of XRP.
While this remains speculative, the statement stresses that selling XRP now, without considering the regulatory and structural changes ahead, may be a decision some investors come to regret later.
Pundit Predicts XRP Rally Before CLARITY Act Signing
Separately, market commentator Zach Rector predicts XRP’s next major move will occur before the CLARITY Act becomes law. He argues that markets react to expectations, not official documents.
Rector warns that waiting for the Act’s signing risks missing the classic crypto pattern: “buy the rumor, sell the news.”
He cites XRP’s history of surging ahead of regulatory milestones, including a 580% rise from $0.50 to $3.40 between November 2024 and January 2025, reaching $3.66 by July 2025—well before the CLARITY Act reached serious Senate discussions.
Currently, Congress is rushing to finalize crypto rules before the holiday break. Rector says the market is unlikely to wait, emphasizing that the Act is a catalyst, not a requirement. He believes investors who delay buying until full regulatory certainty may miss the breakout entirely.