Ripple Lawyer Shuts Down FUD: XRP Safe from Government Seizure—For Now

Ripple's legal team just dropped the hammer on speculation about XRP seizures. The message? Back off, regulators—this digital asset isn't going anywhere.

No confiscation—no problem

Ripple's counsel swatted away rumors of impending government grabs like a bad altcoin pitch. Turns out, even bureaucrats can't just Ctrl+C, Ctrl+V their way into crypto wallets.

The fine print

While the 'for now' qualifier might make HODLers twitch, it's standard legal hedging—not a red alert. Meanwhile, Wall Street still can't decide if crypto is a threat or just their next fee-generating product wrapped in blockchain buzzwords.

Technical transfer mechanisms exist but face limitations

XRPL validator “Vet” outlined a theoretical mechanism for transferring escrowed XRP to government control without waiting for scheduled releases. The process WOULD involve setting the regular key of XRP escrow accounts to a government-controlled address, enabling complete transfer through a single XRPL transaction.

However, Ripple senior software engineer Mayukha Vadari noted significant limitations with this approach. “Wouldn’t work if you only wanted to do a partial transfer, though — it’s an all-or-nothing solution,” Vadari explained, highlighting the inflexibility of the proposed mechanism.

Correct, every account could only be "transferred" to one address. But there are many accounts out there, instead of one account with many escrows.

SEC settlement process continues

Morgan has provided detailed updates on the SEC v. Ripple settlement negotiations, which began with Ripple signing an agreement on April 23, followed by SEC approval on May 8. The parties have successfully obtained court approval to hold appeals in abeyance through June 16.

The settlement process has encountered procedural complications. Judge Torres initially denied the parties’ first joint motion due to technical errors. A second joint motion addressing Rule 60 requirements was filed on June 12, seeking proper court approval for the settlement terms.

The agreed settlement reduces Ripple’s fine to $50 million and dissolves the injunction against XRP (XRP) sales. Upon completion, both the appeal and cross-appeal will be dismissed, ending the multi-year litigation.

Legal experts note that government seizure of cryptocurrency assets typically requires criminal conduct or national security threats. Ripple’s civil SEC case does not provide grounds for asset forfeiture, as the settlement acknowledges no criminal wrongdoing.

The company’s escrow structure, designed to provide market stability through controlled XRP releases, remains intact throughout the settlement process.

Ripple holds approximately 50 billion XRP in escrow accounts and releases up to 1 billion tokens monthly based on market conditions. This systematic approach has provided predictability for XRP markets and institutional users.