Could the US Government Accept Ripple’s $125 Million Fine Payment in XRP? Experts Weigh In

Recent discussions have emerged within the XRP community about the possibility of the U.S. government accepting Ripple’s $125 million fine payment in XRP tokens instead of U.S. dollars.

This speculation comes amid the U.S. government’s announcement to create a crypto asset stockpile for altcoins. Additionally, President Trump’s earlier remarks highlighted the government’s potential to hold XRP.

Amid these developments, community members now suggest that Ripple’s fine payment could mark the government’s first acquisition of XRP.

To recap, in August 2024, a federal court ordered Ripple Labs to pay a $125 million penalty to the U.S. SEC for violations of securities laws related to XRP sales to institutional investors.

At the time, Ripple proposed depositing the funds into an escrow account, which the SEC accepted under a court-approved arrangement. However, whether the escrowed funds were held in U.S. dollars or XRP tokens remains unclear.

Now, with recent developments surrounding the creation of a U.S. government digital asset stockpile, the idea of Ripple’s penalty being settled in XRP rather than USD has gained renewed attention.

Could the U.S. Accept XRP as Payment?

Prominent XRP community member Yassin Mobarak has pointed out the possibility of the U.S. government accepting XRP as a payment for the fine. His argument is based on the new digital asset stockpile, which will hold high-quality digital assets with deep liquidity, such as XRP.

Mobarak suggests that Ripple could settle its fine in XRP instead of USD, potentially leading to a historic first: the U.S. government holding XRP.

If this happens, Mobarak believes the government’s interest in XRP’s price appreciation could align with that of XRP holders, which could, in turn, foster regulatory clarity and wider adoption of the cryptocurrency in the U.S. market.

Legal Precedents and Expert Opinions

Attorney Jeremy Hogan has weighed in on the matter, referencing the 1869 Supreme Court case Willard v. Tayloe. This case established that payments in commodities, as opposed to dollars, could be legally enforced if both parties agreed to the arrangement.

Hogan suggests that, applying this precedent, a mutually agreed-upon payment in XRP between the SEC and Ripple could be legally viable.

However, a significant obstacle remains: penalties are typically paid to the U.S. Treasury. While the Treasury would oversee the digital asset stockpile, there is no official confirmation that it would accept XRP as payment instead of USD.

Meanwhile, Hogan also noted the potential financial impact. Had Ripple escrowed the penalty in XRP rather than USD, the Treasury could have gained nearly half a billion dollars due to XRP’s price appreciation. 

Am interesting sidenote here is that if Ripple was required to exchange XRP for dollars back when it escrowed the penalty, the Treasury lost out on almost half a billion dollars versus if it had allowed Ripple to just escrow XRP (due to the price increase). Half a billion…

— Jeremy Hogan (@attorneyjeremy1) March 7, 2025

At the time of the penalty’s set value in 2024, XRP was around $0.50. However, today, its value is at over $2.540.