XRP Ledger developers have proposed four code changes to close exceptions that allow restricted tokens to reach accounts without issuer approval. The proposals were updated this week and combined into an upgrade named fixCleanup3_5_0. None of the changes has entered the XRP Ledger's main software or become active on mainnet. After the software changes are merged, activation would still require more than 80% of trusted validators to support fixCleanup3_5_0 for two consecutive weeks.
Issuers of regulated assets, including stablecoins and tokenized funds, can require approval before an account holds the tokens, often to conduct identity checks. A trust line records that approval and connects an XRP Ledger account to a token issued by another party. Developers have identified ways for tokens to bypass the approval requirement.
One proposed change would require an account to obtain approval for both tokens in a trading pool before buying a share of the pool. These automated market makers trade tokens automatically, and pool shares are themselves tokens. Another proposed change would remove an exception that applies approval checks only to trust lines whose balances are zero. That exception allows trust lines already holding tokens to receive additional tokens. The fixes would also introduce a broader check intended to apply approval requirements consistently across existing and future XRP Ledger features.
The proposed rules could affect holders who possess restricted tokens without issuer approval. Those holders could transfer the tokens only back to the issuer. Hussein "Vet" Zangana, the XRP Ledger Foundation's director of community and product, said an issuer could approve a holder's trust line at any time and thereby restore unrestricted use.
The XRP Ledger Foundation said developers have examined the exceptions, including a route through NFT trades that allowed tokens to reach unapproved accounts before an August 2025 fix. Zangana said the developer discussions concern protocol guarantees rather than reports of affected users. Zangana said any existing unapproved balances originated in payments from issuers or accounts previously approved by those issuers.
The Foundation is unaware of any balance created by an outsider exploiting the remaining exceptions. Zangana said the Foundation knows of no holder who acquired such a balance through trading. The Foundation characterized the work as routine strengthening of the protocol and said the work was unrelated to a security incident.
XRP Ledger Developers Propose Code Changes to Restrict Token Access
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Summary
XRP Ledger developers have proposed code changes to block restricted tokens from reaching unapproved accounts, with the update named fixCleanup3_5_0 targeting trust lines and trading pools. The changes, which include requiring approval for tokens in trading pools, have not yet been activated on mainnet and need over 80% validator support for two weeks. The XRP Ledger Foundation said the work is a routine protocol strengthening. The update could affect new token listings and token launch news as it tightens access rules for stablecoins and tokenized funds.
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