TL;DR
- XRP Ledger developers proposed fixes under fixCleanup3_5_0 to stop restricted tokens from reaching unauthorized accounts through trust-line and liquidity-pool exceptions.
- One change blocks unauthorized trust lines from receiving balances, while another requires authorization for both AMM pool assets before an account acquires LP tokens.
- The fixes remain under review and are not active on Mainnet. Unauthorized holders would be able to return tokens to issuers, which could later approve them.
XRP Ledger developers have proposed a set of fixes to tighten how restricted tokens can be received and held, closing authorization exceptions that could allow assets to reach accounts without issuer approval. The open GitHub pull request targets trust-line behavior under the planned fixCleanup3_5_0 amendment. The changes strengthen permission controls across the XRP Ledger ecosystem, but they are not yet active on Mainnet and should not be treated as deployed network rules. Restricted-token issuers can use authorization requirements to control who may hold their assets, making consistent enforcement particularly important for stablecoins, tokenized funds and other permissioned instruments issued on XRPL.
Proposed fixCleanup3_5_0 Tightens Authorization Across Token Flows
One issue involves unauthorized trust lines that already carry a balance continuing to receive additional tokens. The current payment-engine authorization check can fail to block those transfers because it only activates when the trust-line balance is exactly zero. The proposed change removes that exemption, making an unauthorized receive fail instead. It also prevents a payment from crossing through zero and creating a new unauthorized position, while still allowing holders to redeem assets back toward the issuer.
A related proposal would require authorization for both assets before an account can acquire an AMM liquidity-provider token. LP tokens represent exposure to the assets inside a pool, meaning an account could otherwise gain indirect exposure to a restricted asset it was never approved to hold. The change fits XRPL’s broader development of permissioned liquidity infrastructure designed around issuer and counterparty controls.
For holders, the proposed rules preserve an exit path. An unauthorized balance would remain spendable back to its issuer rather than becoming permanently trapped, and an issuer could later approve the trust line to restore normal use. The package also aims to keep authorization checks consistent across existing and future features, reinforcing the authorization model around permissioned trading environments for regulated asset flows across XRPL.
Crucially, the fixes remain under review rather than approved network upgrades. Pull request #8650 is still open and is stacked on another open change, while the broader package is intended for fixCleanup3_5_0. Even after code review and inclusion in a release, consensus-level changes require the network’s validator approval process before activation. Recent XRPL maintenance amendments illustrate that distinction between proposed code, validator support and Mainnet deployment. Until those steps are completed, existing ledger behavior remains unchanged.