Ripple’s XRP Tokens Safe from Government Seizure, says Legal Counsel
ripple’s legal advisor, Bill morgan, has debunked rumors that teh U.S. government might take XRP tokens from the company’s escrow accounts.Morgan firmly stated, “No it won’t,” in response to analyst John Squire’s concerns about potential government confiscation.
While a technical method exists for transferring escrowed XRP to government control, it has significant limitations. XRPL validator “Vet” suggested a theoretical transfer mechanism. This involves changing the regular key of XRP escrow accounts to a government-controlled address. However, Ripple’s Mayukha vadari highlighted its inflexibility. “It’s an all-or-nothing solution,” Vadari noted.This means the government can’t partially seize XRP tokens. each account can only be moved to one address, not partially.
Despite this, the SEC settlement wiht Ripple is progressing. The settlement reduces Ripple’s fine to $50 million and ends the injunction on XRP sales. The process requires setting the regular key of XRP escrow accounts. Yet,it’s not a practical solution for partial transfers. The company holds about 50 billion XRP tokens, releasing up to 1 billion monthly based on market conditions. This ensures market stability.
The SEC and Ripple have made progress in their settlement. Ripple agreed to a $50 million fine, and the injunction on XRP sales is lifted. The settlement must be approved by the court. Judge Torres initially denied the first joint motion due to technical errors. A second motion was filed on June 12, addressing Rule 60 requirements.
Legal experts say government seizure of crypto assets usually requires criminal activity or national security threats. Ripple’s case is civil, not criminal.
