Ripple Lawyer Shuts Down Rumors of US Gov Seizing XRP Escrow Reserves

Fresh speculation circulating on social media has suggested that the United States government is considering seizing Ripple’s XRP escrow for use in its national financial reserves. The rumor quickly gained attention, prompting a direct response from Ripple’s legal team.

Bill Morgan, a lawyer closely associated with Ripple and the XRP community, explicitly denied the claims. In a brief but firm statement shared via X, Morgan responded to the speculation by stating, “No, it won’t,” in reference to the possibility of government seizure.

This clarification came after a chain of tweets about XRP by the crypto influencers John Squire and Pumpius, who spoke of the prospects of adding XRP into the US reserve strategy. Although it seems like an unlikely step, this is not exactly impossible, as indicated by Pumpius, who cites the example of Bitcoin ETFs, which were initially regarded as unattainable.

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The fresh interest followed Ripple’s release of 1 billion XRPs out of escrow in three events. These were 500 million, 300 million, and 200 million XRP, respectively, and collectively, at the time, they were estimated to be worth more than $2.2 billion at market prices.

Ripple has consistently made escrow distributions according to the monthly distribution schedule. The release came at a time, however, when there was increased speculation on whether the US government would decide to use crypto assets.

No Official Support for Claims of Federal Use or Seizure

Additionally, there has been increased chatter regarding the Federal Reserve’s alleged use of XRP in its FedNow payment system. According to posts from some users, XRP is already part of active payment processes.

Nonetheless, there has been no official communication indicating that the Federal Reserve coins use XRP in conducting their transactions. Volante Technologies, one of the firms involved in the FedNow pilot, does have an existing affiliation with Ripple on blockchain solutions. However, this is not an affirmation of the central bank’s utilization of XRP.

Amid growing attention on national crypto strategies president and current US leader Donald Trump has announced plans for a Strategic Bitcoin Reserve. He has also suggested the probable addition of altcoins such as XRP, SOL, and ADA.

This has contributed to speculation that XRP may find a formal place in US financial infrastructure. Such discussions have been fuelled only by the impending end of the SEC versus Ripple legal battle.

Despite the widespread rumors, no evidence supports claims that the US government plans to seize Ripple’s XRP escrow. Ripple’s legal representative has made the company’s position clear, reinforcing that such action is not underway.

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