Legal expert Jeremy Hogan has explained how Ripple could pay its $125 million fine in the XRP lawsuit against the U.S. SEC using XRP itself, potentially making these tokens part of the U.S. Digital Asset Stockpile. This comes just after President Donald Trump signed an executive order to establish a strategic Bitcoin reserve and a digital asset stockpile.

How Ripple’s $125 Million Fine Could Become Part of U.S. XRP Reserves

In a post on X, Jeremy Hogan pointed out that while the court issued the fine in U.S. dollars, it’s possible that Ripple could satisfy the monetary judgment by transferring an equivalent amount of XRP to a federal XRP storage address.

The lawyer cited the U.S. Supreme Court case Willard v. Tayloe to support his argument that Ripple could pay the judgment in XRP. He noted that in this case, the court ordered the fulfillment of a contract in gold instead of dollars.

Hogan highlighted the reasoning behind the court’s decision, stating that such relief could be granted if it serves the interests of justice and does not cause undue hardship or unfairness to any party. As a result, Judge Analisa Torres, who ruled against Ripple, could allow the company to pay the fine in XRP if she determines that it does not create any injustice.

Hogan further argued that although Willard v. Tayloe was decided in equity, the same principle could apply in the Ripple vs. SEC lawsuit—especially if both parties agree to the payment in XRP. However, he cautioned that this would require the SEC’s consent.

This theory gains relevance in light of Trump’s executive order establishing the U.S. strategic Bitcoin reserve and digital asset stockpile, which includes XRP as one of the cryptocurrencies the U.S. government aims to hold.


A Bigger Concern in This Arrangement

Hogan pointed out a potential issue with this setup: the $125 million judgment against Ripple is classified as a penalty, meaning the fine must be paid to the U.S. Treasury Department. However, he quickly noted that this shouldn’t be a major problem, as the Treasury also oversees the U.S. digital asset stockpile.

He then presented a scenario in which the U.S. government could potentially lose out on half a billion dollars if Ripple is forced to convert XRP to dollars before paying the fine. This is based on the assumption that XRP’s price has significantly increased since the initial ruling, meaning the government could have benefited more if the penalty funds were held in XRP.

Hogan concluded that this could be an interesting point for Ripple’s legal team to raise with Judge Torres if they seek approval to settle the fine in XRP rather than fiat currency.


#xrp , #Ripple , #blockchain , #CryptoRegulation , #CryptoReserve


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