- Ripple will pay SEC fine in cash, not XRP, ending related market rumors.
- XRP price rose 7% after legal clarity; government seizure claims dismissed.
- Judge Torres’ ruling on settlement motion will likely speed case resolution.
Former U.S. Securities and Exchange Commission (SEC) official Marc Fagel has confirmed that the settlement payment from Ripple Labs to the agency is secured in cash and will not be paid using XRP tokens. The clarification refutes widespread social media rumors that the fine would be settled with XRP, a scenario that had raised concerns about potential market impact.
Fagel stated that the payment is held within an escrow account, eliminating any risk of XRP token transfers as part of the settlement. The news brought some clarity to the market, with the price of XRP rising 7%.
Experts Refute Broader Lawsuit Rumors
The misinformation surrounding Ripple’s payment method sparked concerns that the SEC fine could be paid in XRP tokens. Such a scenario raised questions about possible market impacts and regulatory outcomes. However, these rumors were dispelled by Fagel, who clarified that the funds are already reserved in cash form, eliminating any risk of XRP token transfers as part of the settlement.
Related: Ripple Lawsuit Resolution Could Be Weeks Away, Expert Says, Countering ‘2026 Delay’ Theory
Additional opinions from XRP community members back up this position. They noted that while XRP tokens can be moved, Ripple’s payment obligations are set up in an all-or-nothing manner, making part payments or token-based settlements unlikely.
XRP Price Reacts to News
Following the news, XRP’s price saw a 7% increase, trading at $2.17 at the time of writing. However, earlier speculation by crypto analyst John Squire pointed out the possibility of the U.S. government seizing Ripple’s escrowed XRP to hold as a national reserve. Lawyer Bill Morgan promptly refuted this idea, stating that the scenario is not feasible.
Related: Legal Expert Clarifies Ripple vs. SEC Timeline: A Ruling Could Come at Any Time
Morgan further addressed concerns about delays in the case’s resolution. He dismissed fears that the Ripple vs. SEC dispute might extend into late 2026, citing the current legal situation and recent joint motions. The case hinges on whether Ripple’s sale of XRP constitutes an unregistered securities offering, a question that has been under judicial review since 2020.
Court Awaits Judge Torres’ Decision on Revised Settlement Motion
Both parties are currently awaiting District Judge Analisa Torres’ ruling on their amended joint motion to settle the lawsuit. The revised filing requests a reduction of Ripple’s civil penalty from $125 million to $50 million and seeks to lift restrictions on institutional XRP sales. The motion cites “exceptional circumstances” to correct procedural errors from a prior settlement attempt.
Morgan explained that unless the judge rejects the motion and the settlement process collapses, resulting in appeals from both sides, the case is expected to conclude without further delays.
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