Ripple’s potential XRP contribution to the U.S. government has ignited a lively discussion within the community. Some members propose utilizing XRP for regulatory fine payments, which could result in the U.S. government holding XRP. Notably, XRP community advocate Crypto Eri has suggested that Ripple consider releasing a portion of its monthly XRP escrow to the U.S. government. This idea is based on leveraging XRP’s underlying blockchain platform, the XRPL, to showcase automated and secure transfers. However, legal hurdles may complicate this initiative, as the U.S. government only accepts contributions in fiat currency. A point of contention arose when MoneyGCC Co-Founder SurferMonkeyHQ highlighted the absence of a legal framework for the government to accept cryptocurrency donations. While the U.S. Treasury permits individuals to donate to the government, payments must be made in U.S. dollars through official channels like Pay.gov. Currently, there is no legal provision for the U.S. government to accept cryptocurrency gifts; they are restricted to USD. https://t.co/9c4O5uaAxK — MoneyGCC (@MoneyGcc) March 7, 2025 Despite these obstacles, some community members still envision a way for Ripple to contribute indirectly through an escrow mechanism. Ripple’s XRP Settlement Proposal gained traction after XRP community member Yassin Mobarak proposed that Ripple pay its $125 million penalty to the U.S. SEC in XRP instead of dollars. With the U.S. government planning to establish a digital asset reserve, this could be a strategic move for Ripple to align its interests with regulatory authorities. #XRPCommunity Ripple Labs was ordered to pay a $125 million penalty to the U.S. Securities and Exchange Commission (SEC) for the improper sale of its $XRP tokens. To address this payment, Ripple sought a delay and suggested placing the $125 million into an escrow account, a proposal that received SEC approval. The specifics of whether the escrow funds would be in XRP or U.S. dollars remain unclear. Some hope that paying the fine in XRP could encourage the government to adopt a more favorable regulatory stance. Attorney Jeremy Hogan noted that while penalties are typically settled in fiat currency, historical legal precedents from the 19th century indicate that alternative forms of payment can be acceptable if both parties agree. Although the Ripple judgment is specified in U.S. dollars, it is conceivable that Ripple could fulfill the judgment by transferring an equivalent amount of XRP to a Federal XRP “stockpile” address. A Supreme Court case from 1869, Willard v. Tayloe, supports this notion. https://t.co/56iMaZjGOl — Jeremy Hogan (@attorneyjeremy1) March 7, 2025 He further suggested that it might be possible for the U.S. Treasury, which oversees the XRP inventory, to facilitate such a transaction in a formal or innovative manner.
Ripple’s Bold Plan to Donate XRP to the US Treasury Gains Attention
