XRP Ledger developers tighten the rules for who can hold 'restricted' tokens

XRP Ledger developers are proposing four fixes aimed at closing loopholes concerning restricted tokens.

The proposed amendment, fixCleanup3_5_0, intends to prevent restricted tokens from reaching accounts that have not been approved by the issuer.

The XRP Ledger Foundation stated that no users were affected by these potential issues. The Foundation characterizes this work as routine protocol hardening, with no reported user impact or signs of outside exploitation.

The changes target three aspects of the ledger: trust-line management, automated market maker (AMM) pools, and the consistency of transaction checks across the network.

Under the XRP Ledger, holding a token besides XRP involves a trust line, which is a standing relationship between an account and the token's issuer. Issuers can restrict their tokens so only approved accounts can hold them.

The identified gaps allowed certain restricted tokens to move to accounts lacking explicit issuer approval, stemming from issues in trust-line handling, AMM pool behavior, and transaction checks.

Once the amendment is active, unapproved restricted tokens would largely become limited, primarily allowing holders to send them back to the issuer. Issuers retain the power to approve accounts retroactively, which helps manage legitimate edge cases.

For activation, fixCleanup3_5_0 requires support from over 80% of trusted validators, and this support must persist for two consecutive weeks. The proposal surfaced in late October 2026, with updates posted the week of October 27, 2026, and no activation date is currently set.