Brad Garlinghouse Shocks Crypto World: Ripple Offers $50M in XRP to Settle SEC Case — Will U.S. Accept?

The United States government may soon receive $50 million in XRP from the Ripple SEC settlement. Ripple CEO Brad Garlinghouse indicated the company might settle the fine using XRP instead of traditional currency. The settlement stems from Ripple’s violation of federal securities laws by offering its token to institutional clients without proper registration. The SEC has not approved the alternative payment method yet, sparking interest in whether XRP will join the government’s national crypto reserve.

Currently, the $50 million fine amounts to roughly 24.1 million XRP, considering its recent price near $2.07. Ripple’s proposed settlement follows years of legal disputes over the classification of XRP. The agreement involves the company paying a reduced penalty and settling ongoing appeals, including a cross-appeal filed by the SEC. An internal SEC vote on approving this payment method is the critical next step, determining whether the government adds XRP funds to its holdings.

Ripple SEC Settlement and Fine Payment in XRP

In August 2024, a judge ordered Ripple to pay $125 million for unregistered XRP sales to institutional clients. Ripple complied but placed the funds in an interest-bearing account while awaiting the resolution of appeals. Following a recent shift in the SEC’s crypto enforcement stance, the company and the agency reached a settlement, lowering the fine to $50 million. Ripple also agreed to withdraw its cross-appeal under the XRP SEC case deal, possibly ending the extended legal conflict.

Great to be back with @LizClaman today to chat about Ripple’s historic acquisition of prime broker Hidden Road and what this means for the broader crypto market, as the US takes a much-needed pro-innovation approach with new leadership. We’re moving past the SEC’s war on crypto… https://t.co/6ZpkKmg9og

— Brad Garlinghouse (@bgarlinghouse) April 11, 2025

Interestingly, Garlinghouse suggested during a FOX Business interview that Ripple could pay the fine using XRP. The company has discussed this option with the SEC, but the agency’s decision remains uncertain. A $50 million payment in XRP amounts to more than 24 million units, sparking debate about whether the government will add this cryptocurrency to its national crypto reserves.

Impact on the U.S. National Crypto Reserve

Paying the $50 million penalty with XRP raises questions about the future of the U.S. government’s digital asset holdings. President Trump has issued an executive order mandating the creation of a crypto reserve. Under this order, the government’s crypto holdings are funded through civil and criminal forfeitures, ensuring no taxpayer money is used.

The federal government’s current digital asset holdings exceed $16 billion, including major cryptocurrencies like BTC, ETH, and BNB. XRP is currently missing from this collection. Accepting Ripple’s fine payment in XRP would mark the first time the government holds this digital currency. This raises questions about Ripple management and its potential role in future federal crypto strategies.

SEC’s Approval of Ripple’s Proposed Payment in XRP

Securing approval from the SEC represents the last obstacle for Ripple’s payment proposal. An internal vote by the commission on the XRP SEC case will determine if they permit the fine payment using XRP. This outcome affects the Ripple SEC settlement terms and could enable the U.S. government to add XRP to its digital asset portfolio. The agency’s position might hint at its broader regulatory views on digital currencies.

Approval would be a significant step for XRP, as it would gain formal financial recognition from a government body. The decision could have considerable consequences for Ripple Labs and the broader crypto sector. With the SEC’s decision approaching, the market and government bodies will closely monitor whether XRP enters the federal reserves.

Will XRP Join the U.S. National Crypto Reserve?

The possibility of the U.S. government accepting $50 million in XRP from Ripple’s settlement is a potentially historic moment. It could lead the government to include XRP in its official digital asset holdings, boosting its standing. The result of the SEC’s internal vote will likely shape future policies and set a precedent for how cryptocurrencies are treated in legal and financial frameworks.

The crypto industry watches closely as Ripple’s settlement decision progresses. The government’s potential acquisition of XRP might influence its digital currency strategy, including managing its holdings. The coming weeks are crucial in determining XRP’s future role within federal finance, regardless of its inclusion in reserves.

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