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XRP Ledger Developers Propose Four Fixes for Restricted-Token Controls

XRP Ledger developers have proposed four changes intended to stop permissioned tokens from reaching accounts their issuers have not approved. The work targets edge cases involving automated market makers, existing trust-line balances and future ledger features.

Issuers can require authorization before an account holds a regulated stablecoin, fund token or other issued asset. The proposed fixCleanup3_5_0 bundle would require approval for both assets before an account receives an automated-market-maker position and would close an exception involving trust lines that already contain a balance.

The changes would also restrict any currently unapproved holder to returning the asset to its issuer, unless the issuer later grants approval. The XRP Ledger Foundation told CoinDesk that it knows of no outsider exploiting the remaining exceptions and characterized the work as protocol hardening, not incident response. coindesk.com

None of the four fixes has been merged into the stable network software or activated on mainnet. After release, an amendment must receive support from more than 80% of trusted validators for two consecutive weeks before activation.

The proposal concerns tokens issued on XRP Ledger, not native XRP. Issuers can apply approval, freeze and clawback rules to their tokens, while XRP itself cannot be frozen by an issuer.

TOKEN RECON ASSESSMENT

The proposal improves the enforceability of permissioned assets but is not a deployed security fix. Its value will depend on complete test coverage across the decentralized exchange, AMMs and future features, followed by sustained validator approval. The absence of known exploitation reduces immediate urgency, while the potential institutional use of restricted assets raises the cost of leaving inconsistent authorization paths unresolved.

Sources

XRP Ledger known amendments

XRPL Foundation amendment repository

XRP Ledger token-freeze documentation

CoinDesk, proposed restricted-token fixes

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