Ripple Settle SEC Fine Without XRP Involvement

The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has reached a critical phase. Speculation emerged suggesting Ripple might settle its financial obligations to the SEC with XRP, especially in light of the cryptocurrency’s recent price drop. However, Marc Fagel, a former SEC official, refuted these claims. He clarified that Ripple’s compensation would be fulfilled through a pre-allocated cash reserve, not XRP. Despite this clarification, the trial continues to attract attention, and XRP’s market performance remains a focal point for the community.

Is Ripple Ready to Make the Payment?

Mr. Fagel emphasized that Ripple’s approach to settling the SEC fine did not involve using XRP coins. Instead, funds have been prepared in cash within an escrow account to cover potential penalties. This announcement aimed to calm the swirling rumors within the XRP community.

In support, a prominent XRP advocate also remarked that the XRP currently held in escrow operates on an all-or-nothing principle. This means any movement of the reserve would entail releasing it in its entirety, rather than partially.

Adding to the discussion, crypto analyst John Squire had earlier speculated that the U.S. government might seize Ripple’s escrowed XRP for national reserves, a theory quickly rebuffed by lawyer Bill Morgan as being far-fetched.

Will XRP’s Value Stay Unsteady?

Despite a dip in XRP’s price by over 2%, it later gained traction, benefiting from a broader cryptocurrency market surge. President Donald Trump’s announcement of a ceasefire between Iran and Israel contributed to the market revival. Bitcoin experienced a nearly 3% rise, reaching $106,000, while XRP saw a 6% increase in just one day.

Bill Morgan clarified concerns about the Ripple-SEC lawsuit stretching to late 2026. He mentioned that unless Judge Analisa Torres rejects the current consensus, such a prolongation seems unlikely. The expected resolution involves accepting the summary judgment, paying the fines, and obtaining a permanent injunction.

The legal process presently awaits a crucial SEC filing, expected in mid-August. Judge Torres’s decision is also highly anticipated by the XRP community. Many experts believe the judgment could sway in either direction, dismissing the idea of the trial dragging on for years. Developments over the coming months should offer greater clarity.

Looking ahead, market participants await pivotal legal and economic developments involving Ripple, the SEC, and the broader crypto market to gain clearer insights into potential outcomes of this high-stakes case.