Ripple CEO Suggests Payment of SEC Fine in XRP
With Ripple facing a $50 million fine for violating federal securities laws, CEO Brad Garlinghouse has hinted that the payment could be made in XRP. This suggestion was made during a recent interview on FOX Business’ Claman Countdown, where Garlinghouse discussed Ripple’s settlement with the SEC.
Ripple Could Pay SEC Fine in XRP
Garlinghouse outlined how Ripple could settle the $50 million fine with the SEC. The company was previously ordered to pay a $125 million fine for offering XRP to institutional clients without proper registration with the SEC. Ripple complied by depositing the full amount into an interest-bearing account pending the resolution of appeals.
Following a recent policy shift by the SEC, an agreement was reached with Ripple to drop its cross-appeal. The revised terms include a reduced fine of $50 million and the dismissal of a permanent injunction. Discussions even included the possibility of paying the fine in XRP, although it is unclear whether the SEC has approved this proposal.
At the current value of $2.03 per XRP coin, the equivalent of the $50 million fine amounts to 24.63 million XRP. The final decision, including the potential payment in XRP, awaits approval from the SEC commissioners in an upcoming closed-door meeting.
Implications of Ripple’s Fine Payment in XRP
The prospect of Ripple paying the SEC fine in XRP has sparked speculation about the fate of the digital assets. Some investors question whether the $50 million in XRP would be added to the U.S. digital asset stockpile.
President Trump’s recent order to create a Bitcoin-only reserve and digital asset stockpile raised the possibility of including XRP. However, the order clarified that funds from civil and criminal forfeitures would finance the reserve, ensuring no cost to taxpayers. The U.S. government currently holds over $16 billion in various cryptocurrencies but does not currently hold XRP.
If the SEC accepts Ripple’s proposal to pay the fine in XRP, the government could acquire XRP coins for its digital asset stockpile. The outcome of this decision is yet to be determined, as discussions continue between Ripple and the SEC.