Ripple’s authorized counsel Invoice Morgan has dismissed hypothesis that the U.S. government may seize XRP tokens from the corporate’s escrow accounts for nationwide reserve functions.
Morgan’s blunt “No it gained’t” response countered analyst John Squire’s claims about potential government 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 government 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 by way of a single XRPL transaction.
Nonetheless, Ripple senior software program engineer Mayukha Vadari famous vital limitations with this strategy. “Wouldn’t work when you solely needed to do a partial switch, although — it’s an all-or-nothing answer,” Vadari defined, highlighting the inflexibility of the proposed mechanism.
SEC settlement course of continues
Morgan has supplied detailed updates on the SEC v. Ripple settlement negotiations, which started with Ripple signing an settlement on April 23, adopted by SEC approval on Could 8. The events have efficiently obtained court docket approval to carry appeals in abeyance by way of June 16.
The settlement course of has encountered procedural issues. Choose Torres initially denied the events’ first joint movement on account 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 tremendous to $50 million and dissolves the injunction towards XRP (XRP) gross sales. Upon completion, each the attraction and cross-appeal can be dismissed, ending the multi-year litigation.
Authorized specialists word that government seizure of cryptocurrency property usually requires legal conduct or nationwide safety threats. Ripple’s civil SEC case doesn’t present grounds for asset forfeiture, because the settlement acknowledges no legal wrongdoing.
The corporate’s escrow construction, designed to supply market stability by way of 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 situations. This systematic strategy has supplied predictability for XRP markets and institutional customers.
