Lawyer Denies Rumors About US Seizing XRP Escrow for Reserve

Speculation is mounting about the US government’s possible incorporation of XRP tokens into its national financial reserves, as well as the potential seizure of Ripple’s XRP escrow. However, Ripple lawyer Bill Morgan has denied these rumors, pouring cold water on the speculation.

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Is the US Govt. Planning to Seize Ripple’s XRP Escrow?

In a recent development, multiple sources have cited increasing rumors about the US government’s possible acquisition of Ripple’s XRP escrow for the national reserve. Social media influencers like John Squire have hinted at the country’s potential move as part of its crypto reserve strategy.

However, XRP attorney Bill Morgan unequivocally shut down the rumors with a straightforward assertion, “No, it won’t.” Morgan effectively denied any government plans to seize Ripple’s XRP escrow, leaving no room for further speculation.

Other prominent voices on X, like Pumpius, have also cited rumors on the US government’s XRP move. He added that while the idea of the US confiscating XRP escrow may seem improbable, it could still materialize. Pumpius drew parallels with Bitcoin ETFs, which were once deemed unlikely but ultimately became a reality, suggesting that unexpected developments can and do occur. He stated, “U.S. authorities are exploring whether Ripple’s XRP escrow could be repurposed as part of America’s national financial reserves. Sound far-fetched? So did Bitcoin ETFs once.”

Notably, these speculations come following Ripple’s release of 1 billion XRP from escrow, as CoinGape reported earlier. Reportedly, the tokens were unlocked in three transactions: 500 million, 300 million, and 200 million XRP, valued at over $2.2 billion based on XRP’s market price at the time

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Rumor: Federal Reserve Uses XRP for Payments

Meanwhile, there are also speculations that the Federal Reserve is using XRP for payments via its FedNow instant payment system. An X user posted a message arguing about the Fed’s XRP payment,

“Not a test. Not a rumour. 100% confirmed.”

While Volante Technologies, a partner in the FedNow pilot program, has incorporated Ripple’s blockchain for cross-border payments, there’s no official word that the Federal Reserve is utilizing XRP for all transactions.

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United States’ Crypto Reserve Strategy

The circulating rumors about the US government’s seizure of Ripple’s XRP escrow are gaining momentum, especially in light of the government’s strategic crypto reserve plans. After introducing the Strategic Bitcoin Reserve proposal, President Donald Trump revealed potential plans to include altcoins like XRP, SOL, and ADA.

Significantly, the XRP lawsuit settlement is nearing its conclusion, sparking optimism within the community that the token might be included in the US reserve. Clarity on XRP’s regulatory status is fueling speculation about its potential inclusion.

Though Ripple’s technology is gaining traction in serious infrastructure, particularly with its integration into cross-border payment systems, claims related to US reserves and the Fed remain unverified. Concrete evidence is needed for such statements about XRP.

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