Ripple Labs Could Pay SEC Settlement With XRP: Here’s How

Pro-crypto lawyer Jeremy Hogan recently brought the market’s attention to a likely outcome in the longstanding Ripple vs. SEC case.

The attorney said Ripple Labs could use XRP to settle its $125 million fine to the US Securities and Exchange Commission (SEC).

If this eventually happens, it could reinforce XRP as a legitimate US asset, leading to a potential price surge.

Ripple to Pay $125 Million in XRP

While defending his stance, Jeremy Hogan cited an earlier case in the US, which he thinks is similar to Ripple vs SEC.

Willard v. Tayloe is a Supreme Court case after the Civil War when the “U.S. legal tender” general idea was slightly less settled than it is today.

In this case, the Court ordered the performance of a contract in gold instead of dollars.

According to Jeremy, Ripple could take clues from the Willard case and settle its $125 million fine in XRP instead of dollars.

However, he pointed out a key difference in both cases. He said that unlike in the Ripple case, the court sat in equity with a specific performance action.

Nevertheless, Jeremy said he could argue the general principle for both cases are the same. Jeremy noted,

“Especially when the parties would both be AGREEING to payment in a commodity instead of dollars (if the SEC doesn’t agree, it’s not going to happen).”

Backtracking, Judge Analisa Torres ordered Ripple Labs to pay the SEC a $125 million fine for violating US securities laws.

Ripple executives, including CEO Brad Garlinghouse and CLO Stuart Alderoty, said they were happy with the result at the time.

They pointed out that the $125 million fine is substantially less than the $2 billion that the SEC initially sought.

Also, Ripple did not have to pay the $876 million and $198 million in prejudgment interest that the SEC had sought.

However, the company is currently banned from offering or selling unregistered securities under Section 5 of the Securities Act of 1933.

XRP in Crypto Strategic Reserve

Meanwhile, US President Donald Trump recently name XRP, the native digital asset associated with Ripple, as a potential addition to the country’s crypto reserves.

The news triggered a wave of bullish sentiment, pushing XRP to $2.58. Crypto industry executives and analysts reacted quickly to the Ripple news, with opinions ranging from support to skepticism.

Crypto trader Yassin Mobarak on X noted that the government’s decision to stockpile XRP could result in positive price movements for the coin.

He added that the interests of the U.S. government and XRP community members will finally align as both will become XRP holders.

It is important to note that the future of Trump’s crypto reserve plan remains uncertain as it requires Congressional approval.

Where is the Ripple Versus SEC Lawsuit Now?

The legal battle between Ripple Labs and the US Securities and Exchange Commission began in 2020.

The SEC accused the firm and executives Brad Garlinghouse and Chris Larsen of conducting an unregistered securities offering by selling XRP.

On July 13, 2023, Judge Analisa Torres delivered a mixed ruling that provided regulatory clarity.

The court determined that XRP is not inherently a security when traded on exchanges, offering relief to retail investors.

The regulator, seeking to overturn the ruling, filed an appeal against Ripple.

In response, Ripple filed a cross-appeal in October 2024, with an April 16, 2025, due date.

With a new crypto-friendly SEC administration, Ripple hopes for regulatory clarity to prevail with expectations the case will eventually be dropped