As Ripple 
$1 and the United States Securities and Exchange Commission (SEC) reach a pivotal stage in their ongoing lawsuit, rumors have surfaced about Ripple potentially compensating the SEC with XRP coins due to the fallen price of Ripple on the X platform. Some opined this could occur before the ETF approval and the FedNow launch on July 14. Contradicting these claims, former SEC official Marc Fagel stated unequivocally that Ripple would not use XRP for payment but rather a cash amount already placed in an escrow account. This announcement quelled the speculation within the XRP community, although the trial’s progress and the volatility in XRP’s pricing remain concerning.
How Will Ripple Settle Its Compensation?
Rumors that Ripple might pay its SEC fine using XRP coins to exploit the low price were dispelled by former SEC official Marc Fagel. Fagel elaborated that Ripple’s payment would not be made in XRP, elaborating that the funds for the compensation were already secured in cash, waiting in an escrow account.
An XRP advocate supported this claim, asserting that the coins are currently secure, noting that while the XRP in escrow could be moved, it operates on an all-or-nothing basis. This implies that the coins’ release would be in total or not at all.
Previously, crypto analyst John Squire suggested the U.S. government might seize Ripple’s escrowed XRP to hold it as a national reserve. However, lawyer Bill Morgan quickly dismissed this suggestion, stating it was implausible.
Uncertainty Clouding XRP’s Price Amidst Legal Progress
During the rumor-ridden period, XRP’s value dropped by over 2%. However, it rebounded, riding the wave of a general rise in the cryptocurrency market triggered by President Donald Trump’s announcement of a ceasefire agreement between Iran and Israel. While Bitcoin 
$78,258 reached around $106,000 with nearly a 3% increase, XRP appreciated by around 6% over 24 hours.
Speculations about the Ripple-SEC lawsuit extending to late 2026 were clarified by Bill Morgan. He emphasized that unless an exceptional instance like Judge Analisa Torres rejecting the current consensus arises, prolonging the case to such an extent seems unlikely. He suggested the most probable outcome involves accepting a summary judgment, paying fines, and securing a permanent injunction order.
The court proceedings are now awaiting an essential SEC filing due in mid-August. The XRP community remains anxious about Judge Torres’s forthcoming decision. Experts share a consensus that the outcome could go either way, dismissing the notion of the trial dragging into 2026. The case is expected to become clearer in the coming months.
