All of the land in the U.S. is held under the ________ system.

The correct answer is "Allodial." In the context of land ownership in the United States, the allodial system refers to a form of land tenure where the land is owned free and clear of any superior landlord or sovereign, except for government regulations and taxes. This system grants landowners complete control of their property and is characterized by absolute ownership rights.

The concept of allodial title is significant because it contrasts with feudal systems, where ownership was typically held under conditions imposed by a sovereign or lord. In the U.S., landowners benefit from this principle, which allows them a high degree of autonomy over their property, subject only to governmental regulations.

While other systems like feudal, freedom, or statutory may relate to aspects of land law, they do not accurately describe the foundational system of land ownership prevalent throughout the U.S. The feudal system, for example, is primarily historical and was replaced by other forms of ownership. Thus, allodial is the term that encapsulates the ultimate ownership rights seen in American land tenure today.