Adoption of FIT21 initiative will cement XRP’s status in US legal field — CoinMarketCap

“The Financial Innovation and Technology for the 21st Century Act” (FIT21) is a new cryptocurrency legislation proposed by the US House of Representatives. It may significantly affect the crypto market and XRP in particular, CoinMarketCap experts say.

According to Jungle Inc Crypto News experts, FIT21 contains a provision about the tokens that are held in escrow from calculating insider holdings. This may seriously affect the legal classification of XRP, changing the approach to assessing the degree of decentralization of the project.

Currently, more than 40 billion Ripple tokens are in escrow accounts. This has been a key point in recent regulatory discussions regarding the company's influence on the cryptocurrency. However, with the new bill, these tokens could be excluded from the insider ownership calculation, reducing Ripple's stake below the 20% threshold.

If the bill is approved, XRP could be recognized as a decentralized asset, bringing it under the jurisdiction of the Commodity Futures Trading Commission (CFTC) rather than the Securities Exchange Commission (SEC). This would create long-awaited legal clarity for investors and market participants.