Ripple CEO Brad Garlinghouse recently spoke about the end of XRP’s legal fight as the new SEC Chair has officially been appointed, in an interview with Fox Business. He highlighted the recent shift in the US government’s crypto stance and also noted a crucial area that still needs clarification.
In the interview, Garlinghouse discussed the conclusion of the Ripple SEC case and the future of crypto regulations in the US.
Ripple’s recent acquisition of Hidden Road for $2 billion was also discussed which is considered to be one of the largest acquisitions in the history of crypto. He also noted that this acquisition would not make any sense a year before due to the regulator’s hostility towards crypto. However, he shared that the situation has changed now and that Ripple is moving past the SEC’s war, as it enters the next phase of the market.
Ripple had already set aside $125 million for a potential SEC fine. But as the situation has drastically changed, Ripple is reclaiming most of the money along with the interest earned. Now the agency has agreed to drop the appeal and lift the permanent injunction.
The SEC and the US will still be receiving $50 million each, and Ripple is currently in talks to make those payments in XRP instead of U.S. dollars. This has sparked massive speculation in the community whether XRP could be added to the US Digital Assets Stockpile.
Will US Hold XRP In Its Digital Asset Stockpile?
Under an initiative led by Trump, the US government is building a crypto reserve that currently holds $16B in crypto assets like Bitcoin, Ether, USDT and BNB, although there is no XRP yet. Notably, the government will only accept crypto assets from civil or criminal forfeitures. Therefore if Ripple pays its fine in XRP, then it could finally get a spot in the government’s growing stash of digital assets.
The $50 million in SEC’s fine in XRP could amount to about 24.63 million coins at a current price of $2.03 each. However, the settlement still needs SEC approval with the commissioners set to vote in a closed-door meeting. It remains to be seen if the US will accept the fine in XRP and its broader implications on the market.
