Could Ripple Pay the SEC Fine in XRP?
Crypto Lawyer Suggests Unconventional Payment Method for $125 Million Fine
The legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to spark debate. Crypto attorney Jeremy Hogan has put forward an intriguing idea: Ripple could settle its $125 million fine not in fiat currency but in XRP. But how realistic is this proposal?
Ripple vs. the SEC: A Long-Running Dispute
Ripple Labs, the company behind the cryptocurrency XRP, is known for facilitating fast cross-border transactions. However, since December 2020, it has been embroiled in a lawsuit with the SEC, which accused Ripple and its executives, Christian Larsen and CEO Bradley Garlinghouse, of selling XRP without the necessary securities registration—raising over $1.3 billion in the process.
In July 2023, a U.S. federal court ruled that XRP was not a security when sold on public exchanges to retail investors. However, sales to institutional investors were classified as securities transactions, leading to a $125 million penalty. The SEC appealed the decision, arguing that it contradicts established securities laws and legal precedents.
A Legal Precedent: "Willard v. Tayloe"
Jeremy Hogan draws a historical comparison to support his idea: the 1869 Supreme Court case Willard v. Tayloe. In this case, the court ruled that a contractually agreed payment in "cash" could be made in gold coins, as they were legally recognized as currency at the time. Hogan suggests that Ripple could take inspiration from this ruling and attempt to pay its fine in XRP instead of U.S. dollars.
If successful, such a move could legitimize XRP as a recognized U.S. asset and potentially drive up its market value. While many legal experts view this scenario as unlikely, the idea has nonetheless sparked optimism among XRP investors.
Political Developments and Their Impact on Crypto
U.S. politics has also played a crucial role in shaping the crypto landscape. Following Donald Trump’s election victory in November 2024, XRP’s price surged by nearly 400%. This rally was fueled by expectations that the new administration would ease regulatory pressure on the crypto industry. Trump later appointed Paul Atkins, a known critic of strict crypto regulations, as the new SEC chairman. Shortly after, the SEC dropped several lawsuits against crypto firms.
Whether Ripple can realistically settle its fine in XRP—or whether the SEC would even consider such an arrangement—remains uncertain. However, the proposal has certainly sparked fresh discussions in the crypto community.
