With the Ripple vs. SEC legal battle progressing, speculation is spreading across X (previously Twitter) that the company may settle its penalty with the regulator using XRP tokens while market prices remain subdued.
According to some analysts, this may happen before the July 14 FedNow deployment and possible ETF approvals.
Former SEC official Marc Fagel has dismissed the circulating speculation, confirming that Ripple will not be using XRP to settle the fine. Instead, the payment amount has already been secured in cash within an escrow account.
An XRP advocate also reassured that the token remains secure at this stage, noting that although tokens are transferable, the system operates on an all-or-nothing basis.
Cryptocurrency specialist John Squire has speculated that the U.S. government might confiscate Ripple’s escrowed XRP to establish a national reserve. However, Bill Morgan quickly dismissed the notion, responding bluntly, “it won’t.”
Amid these circulating rumors, XRP experienced a decline of over 2%. However, today’s news of a ceasefire agreement between Iran and Israel by President Trump caused a significant recovery in the larger cryptocurrency market. Bitcoin surged nearly 3%, surpassing $106,000, while XRP recorded a 24-hour gain of approximately 6%.
Rumors circulated suggesting the Ripple vs. SEC lawsuit might extend into late 2026, but Bill Morgan dismissed that possibility, stating such a delay would only occur if Judge Torres rejects the current joint resolution. According to Morgan, the most likely scenario is that both sides agree to the summary judgment, including a financial penalty and a permanent injunction.
The court now awaits a crucial SEC submission expected by mid-August. Meanwhile, the XRP community remains uncertain about Judge Torres’s next move. While analysts acknowledge that the outcome is unpredictable, no credible sources have supported the idea of proceedings dragging into 2026.
