The upcoming Senate markup of the CLARITY Act is drawing renewed attention to XRP’s role in institutional settlement. In a post on X, market commentator Vincent Van Code argued that the event could become a turning point for XRP, not because of short-term price action, but because regulatory clarity may allow financial institutions to scale settlement activity on the XRP Ledger.
May 14 markup seen as a legal trigger for larger settlement flows
Van Code said the May 14 Senate markup may deliver the legal clarity that many institutions have been waiting for before expanding blockchain-based settlement. His view is that much of the infrastructure is already in place. The missing piece, in his reading, has been a regulatory framework clear enough to support broader deployment.
He pointed to several corridors already tied to institutional blockchain activity: Ripple’s RLUSD stablecoin network, Société Générale’s EURCV settlement product, SBI-backed remittance testing in Japan, and Ondo Finance systems linked to tokenized Treasury collateral. If those channels grow, the liquidity demands on the XRP Ledger would change with them.
Ripple escrow could be reframed as settlement liquidity
A central part of his argument is that Ripple’s escrow holdings may stop being viewed mainly as a long-term source of possible selling pressure if institutional demand increases. Instead, billions of XRP could be directed into automated market maker pools used to support settlement and liquidity operations tied to RLUSD, EURCV, Japanese remittance rails, and tokenized Treasury products.
Van Code said Ripple could eventually allocate between 5 billion and 10 billion XRP to liquidity pools connected to institutional trading corridors. In that scenario, the XRP Ledger would gain deeper liquidity, allowing larger transfers to clear with lower slippage and making the network more suitable for institutional-scale settlement.
Why the $10 XRP view is tied to liquidity efficiency
His price thesis is built around market structure rather than sentiment. Van Code said automated market maker systems depend heavily on liquidity depth, and transfers worth hundreds of millions require much larger total value locked across XRP pools. At lower XRP prices, maintaining large settlement corridors would require a far greater token supply inside those pools, which he described as inefficient.
That is why he referenced the $10 range. In his view, if institutional payment volume keeps expanding, a higher XRP valuation would reduce the amount of XRP needed to support efficient settlement. The article ties that possibility to the Senate CLARITY Act markup, which has raised expectations that a clearer regulatory framework could lead to larger liquidity deployment on the XRP Ledger and a stronger institutional role for XRP in cross-border finance.