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

XRP Ledger developers have put forward four modifications intended to close vulnerabilities related to restricted tokens.

The fixCleanup3_5_0 amendment aims to prevent tokens under restriction from entering accounts that lack the issuer's authorization. The XRP Ledger Foundation stated that no participants were negatively affected by this situation.

These proposed changes focus on three ledger aspects: trust-line administration, automated market maker (AMM) pools, and the uniformity of transaction verification across the network.

On the network, owning a token besides XRP requires a trust line, which establishes a standing relationship between an account and the token's originator. Issuers possess the ability to limit their tokens so only designated accounts may hold them.

Loopholes allowed some restricted tokens to migrate to accounts lacking explicit issuer consent. Developers identified these gaps within how trust-lines are managed, AMM pool operation, and inconsistent transaction rule application.

Once the amendment becomes operational, unapproved restricted tokens would see their utility significantly diminished. The primary action a holder could perform with them would be returning them to the issuer, contingent upon the relevant trust line receiving approval.

For fixCleanup3_5_0 to become active, it must secure backing from over 80% of trusted validators, and this support must persist for two consecutive weeks.

These proposed alterations do not impact XRP, the network’s native asset.

These technical adjustments reflect a broader trend of protocol strengthening by market participants who seek to reinforce the operational guarantees of the underlying infrastructure.