Ripple’s legal team ruled out any scenario involving forced government seizure of XRP from its escrow accounts.
The SEC settlement process is ongoing, with court filings confirming major procedural steps completed toward final resolution.
Ripple’s escrow system remains stable and functional, continuing its monthly scheduled XRP token releases without disruption.
Ripple’s legal counsel, Bill Morgan, dismissed suggestions by market analyst John Squire that XRP from Ripple’s escrow could be taken by the government. Morgan responded with a clear and direct statement, rejecting any possibility of forced government acquisition of XRP.
A validator on the XRP Ledger, known as Vet, outlined a theoretical process to transfer escrowed XRP using changes to account access keys. This mechanism would involve reassigning control of the escrow account’s regular key to a government-held address, potentially allowing a one-time full transfer.
However, Ripple software engineer Mayukha Vadari addressed the limits of this method. He explained that such a process lacks flexibility and would only allow complete transfers, not partial ones. This further reduces the likelihood of any external party, including the government, altering Ripple’s escrow setup.
SEC Settlement Negotiations Advance
Progress continues on the long-running legal dispute between Ripple and the U.S. Securities and Exchange Commission. Ripple signed a settlement agreement on April 23, which received SEC approval on May 8. Court documents confirm that both parties agreed to pause appeal proceedings through June 16.
Despite procedural delays, the settlement is moving forward. An initial joint motion was denied due to technical issues. A corrected motion was filed on June 12, complying with Rule 60 and addressing court approval requirements.
Settlement Terms Finalize XRP Sales Clarity
Under the proposed terms, Ripple will pay a reduced penalty of $50 million. The settlement also lifts the previous injunction that restricted XRP sales, clearing a major regulatory hurdle. Both appeal and cross-appeal processes will conclude after final approval.
Throughout the legal process, Ripple’s escrow mechanism has continued without disruption. The company currently controls around 50 billion XRP in escrow accounts. It releases up to 1 billion XRP monthly based on market dynamics. This setup is aimed at maintaining price stability and providing clarity to institutional users.
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