Ripple’s $125M SEC Settlement, Could XRP Become a U.S. Government Asset?

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Ripple’s $125M SEC Settlement, Could XRP Become a U.S. Government Asset?

  • Ripple might pay its SEC fine in XRP, leveraging a legal precedent that allows alternative asset settlements.
  • If accepted, the U.S. Treasury would officially own XRP, potentially aligning government interests with XRP holders.
  • This move could boost XRP’s legitimacy, remove regulatory barriers, and drive institutional adoption in the financial system.

Ripple’s never-ending legal battle with the SEC just got an interesting turn. Attorney Jeremy Hogan recently speculated that Ripple could potentially pay its $125 million fine in an equivalent value of XRP.  This would be predicated on an 1869 Supreme Court ruling, Willard v. Tayloe, that established a precedent for paying contracts in alternative forms of value, i.e., gold instead of U.S. dollars. Although Ripple’s case differs in nature, the doctrine of equitable relief can be called upon if both parties agree to the terms.

Hogan pointed out that the penalty was imposed in U.S. dollars. However, if the SEC agrees, Ripple could deposit the equivalent amount in XRP. This would align with a historical precedent that allows contractual obligations to be settled in alternative assets. The bigger challenge is that the penalty is a fine payable to the U.S. Treasury. However, given that the Treasury will oversee the new digital asset stockpile, XRP’s inclusion could be a feasible solution.

SEC and Treasury’s Role in XRP’s Future

Blockchain advocate Yassin Mobarak added another crucial angle to this development. He highlighted that Ripple’s penalty is held in an escrow account under a court-approved agreement. The agreement does not specify whether the escrowed funds are in USD or XRP. If Ripple negotiates payment in XRP, the U.S. government would officially own the asset for the first time. This could align government interests with XRP holders and encourage broader adoption in the financial system.

https://twitter.com/Dizer_YM/status/1897827844069220827

Besides, this move could strengthen XRP’s legitimacy in the U.S. market. If the Treasury accepts XRP, it might remove regulatory barriers that have long restricted its growth. Consequently, XRP’s price could benefit from increased demand and government backing.

If Ripple’s penalty is paid in XRP, it could be a turning point for the token. The U.S. government’s ownership would signal recognition of its value, potentially influencing financial institutions to integrate XRP further. Moreover, such a decision would enhance market confidence, fostering higher adoption rates and price appreciation.

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