- Ripple may settle SEC fine using XRP, fueling speculation on government holdings.
- U.S. government could acquire XRP for reserves, impacting market dynamics.
- SEC delays decision as leadership changes may influence Ripple lawsuit outcome.
Rumors are circulating that Ripple is giving 45% of its XRP supply to the U.S. government to secure access. Speculation is growing that Ripple is negotiating a strategic settlement involving XRP instead of cash to resolve its legal battle with the Securities and Exchange Commission (SEC).
The ongoing lawsuit, one of the most pivotal cases in the cryptocurrency industry, could conclude with a $125 million fine remaining intact. As the April 16 deadline approaches for Ripple’s response to the SEC’s legal arguments, industry experts are analyzing potential settlement outcomes, the government’s interest in XRP reserves, and Ripple’s future institutional sales.
Rumors are circulating that Ripple is giving 45% of its XRP supply to the U.S. government to secure access.
— TheXRPguy (@TheXRP_guy) March 7, 2025
Ripple’s Legal Battle Nears a Key Decision
The SEC’s lawsuit against Ripple has reached a critical stage. The commission has previously settled cases with Kraken, Coinbase, and ConsenSys but has yet to drop its claims against Ripple.
Legal expert Fred Rispoli believes the SEC is delaying final decisions due to leadership transitions. The agency, currently led by a 2-1 pro-crypto commission under acting Chair Mark Uyeda, may wait until a new SEC Chair, possibly Paul Atkins, assumes office before concluding the Ripple case.
Besides, a strategic settlement could prevent further litigation. Legal analyst Fred Rispoli suggests that allowing the $125 million fine to stand would save the SEC from prolonged legal battles. If the case concludes without an appeal, the agency can shift its focus to other regulatory matters. Ripple’s institutional XRP sales, which were classified as securities transactions, remain a point of contention.
My new theory on SEC vs. Ripple:
— Fred Rispoli (@freddyriz) March 7, 2025
No reason why the current 2-1 pro-crypto Commission wouldn't drop the appeal and keep the $125M judgment in place. Starting to think they are waiting for Atkins in order to have the head guy in place for cover to drop/reduce the $125M judgment.
Speculation on XRP Reserves and Government Holdings
Market analysts believe Ripple might settle the fine by transferring XRP instead of paying cash. If true, this would mark a significant shift in the way regulatory fines are handled in the crypto space.
Some speculate that the U.S. government could hold XRP as part of a strategic digital asset reserve. Recently, former President Donald Trump’s confirmation that XRP would be included in national reserves fueled discussions about possible government acquisitions.
Ripple currently holds 37.1 billion XRP in escrow. If a settlement includes XRP transfers, it could impact the cryptocurrency’s market dynamics. However, Ripple’s Chief Technology Officer, David Schwartz, has dismissed concerns about inflation, clarifying that XRP’s supply cannot be increased beyond its existing limits.
