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Highlights
- Legal expert Jeremy Hogan has explained why Ripple could pay its $125 million penalty in XRP.
- The XRP paid by the crypto firm could then be added to the US Digital Asset Stockpile following Donald Trump's executive order.
- The lawyer cited the Willard v. Tayloe case to prove why Ripple could be allowed to pay the judgement sum in XRP.
Legal expert Jeremy Hogan has explained how Ripple could pay the $125 million penalty in its XRP lawsuit against the US SEC in XRP, with these coins then forming part of the US Digital Asset Stockpile. This comes just after US President Donald Trump signed an executive order creating the Strategic Bitcoin Reserve and Digital Asset Stockpile.
How Ripple’s $125 Million Penalty Could Form Part Of The US XRP Stockpile
In an X post, Jeremy Hogan stated that although the court awarded the Ripple penalty in US dollars, it is possible that Ripple could satisfy the monetary judgement against it in the XRP lawsuit by transferring the same amount of XRP to the Federal XRP stockpile address.
The lawyer cited a Supreme Court case (Willard v. Tayloe) to back up his point of the crypto firm paying the judgment sum in XRP. Hogan revealed that in the Willard case, the court ordered performance of a contract in gold instead of dollars.
The legal expert noted the reasoning of the court in that case in which it ruled that such relief could be granted if it will subserve the ends of justice and not produce hardship or injustice to either of the parties. As such, Judge Analisa Torres who gave the ruling against Ripple could allow the crypto firm to pay the judgment penalty in XRP is she believes that it doesn’t cause any injustice.
Hogan argued that although the court was sitting in equity in the Willard case, the same principal could also apply in the Ripple lawsuit between the SEC and the crypto firm, especially if they both agree to the payment in XRP. The lawyer warned that this deal can’t happen if the Commission doesn’t agree.
Hogan’s theory comes following Donald Trump’s executive order to establish a Strategic Bitcoin Reserve and Digital Asset Stockpile. XRP is one of the cryptocurrencies the US will include in the stockpile.
The Bigger Problem In This Arrangement
Hogan stated that the bigger problem might be that the Ripple’s $125 million judgment was a penalty and penalties must go to the US Treasury. However, he quickly indicated that this shouldn’t be a problem since the Treasury is overseeing the XRP stockpile.
The lawyer then raised a scenario in which the US could have lost out on half a billion dollars if Ripple had to exchange XRP for dollars when the crypto firm and the SEC agreed to escrow the penalty, pending the duration of the appeal.
This is based on the fact that the XRP price has surged since then, meaning that the government could have made more if these escrowed funds were in XRP. Hogan added that this might be an interesting point to bring up to Judge Torres if she questions payment of the penalty in XRP.
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