Ripple’s authorized counsel Invoice Morgan has dismissed hypothesis that the U.S. authorities might seize XRP tokens from the corporate’s escrow accounts for nationwide reserve functions.
Morgan’s blunt “No it won’t” response countered analyst John Squire’s claims about potential authorities confiscation of Ripple’s XRP holdings.
Technical switch mechanisms exist however face limitations
XRPL validator “Vet” outlined a theoretical mechanism for transferring escrowed XRP to authorities management with out ready for scheduled releases. The method would contain setting the common key of XRP escrow accounts to a government-controlled handle, enabling full switch via a single XRPL transaction.
Nevertheless, Ripple senior software program engineer Mayukha Vadari famous vital limitations with this strategy. “Wouldn’t work if you only wanted to do a partial transfer, though — it’s an all-or-nothing solution,” Vadari defined, highlighting the inflexibility of the proposed mechanism.
SEC settlement course of continues
Morgan has offered detailed updates on the SEC v. Ripple settlement negotiations, which started with Ripple signing an settlement on April 23, adopted by SEC approval on Might 8. The events have efficiently obtained court docket approval to carry appeals in abeyance via June 16.
The settlement course of has encountered procedural problems. Decide Torres initially denied the events’ first joint movement because of technical errors. A second joint movement addressing Rule 60 necessities was filed on June 12, searching for correct court docket approval for the settlement phrases.
The agreed settlement reduces Ripple’s nice to $50 million and dissolves the injunction in opposition to XRP (XRP) gross sales. Upon completion, each the enchantment and cross-appeal shall be dismissed, ending the multi-year litigation.
Authorized consultants be aware that authorities seizure of cryptocurrency belongings sometimes requires felony conduct or nationwide safety threats. Ripple’s civil SEC case doesn’t present grounds for asset forfeiture, because the settlement acknowledges no felony wrongdoing.
The corporate’s escrow construction, designed to offer market stability via managed XRP releases, stays intact all through the settlement course of.
Ripple holds roughly 50 billion XRP in escrow accounts and releases as much as 1 billion tokens month-to-month primarily based on market circumstances. This systematic strategy has offered predictability for XRP markets and institutional customers.
