Ripple’s $125M Penalty Escrowed Pending SEC Appeal
Ripple’s $125 million penalty remains in escrow until both Ripple and the SEC withdraw appeals in the XRP lawsuit. Ripple deposited the penalty in cash, confirmed by former SEC lawyer Marc Fagel, quashing token-payment rumors.
Under court rules, the escrow release requires a joint appeal dismissal. Ripple has already withdrawn its cross-appeal, but the SEC’s internal vote on withdrawal is pending. This delay keeps the Ripple penalty in procedural limbo.
Meanwhile, regulatory developments in Washington, such as SEC Chair Paul Atkins’s “Project Crypto,” point to a narrower stance on token classification. Experts note the SEC’s softer approach to digital assets could expedite cases like Ripple’s.
Traders should watch for the SEC’s final appeal decision. A resolved appeal and released escrow could influence XRP’s market supply and price. For now, the Ripple penalty remains locked, mirroring broader U.S. crypto regulation trends.
Neutral
This escrow update has limited immediate market impact. The continued holding of Ripple’s penalty maintains the status quo, preventing any sudden influx of $125 million into the U.S. Treasury or XRP market. While regulatory shifts under “Project Crypto” could eventually drive a favorable resolution and support XRP prices, the current procedural limbo suggests sideways trading. Historically, similar delays—such as prolonged appeal processes in high-profile crypto cases—led to muted price reactions until legal clarity emerged. In the short term, traders may stay cautious, awaiting definitive appeal outcomes. Long-term, a joint dismissal and fund release could be bullish, but until then the market outlook remains balanced.