XRP News Today: Judge Denies Ripple-SEC Motion, Sparking XRP Escrow Acquisition Theory

Judge Analisa Torres’s decision to deny Ripple and the SEC’s joint motion for an indicative ruling has sparked a provocative theory online. The denial of this request may open a pathway for the government to secure XRP’s escrow, potentially adding the digital asset to the U.S. crypto stockpile announced by Donald Trump in early March.

Captain Redbeard, a prominent figure in the crypto community, suggested that this ruling could set the stage for the U.S. government to acquire XRP’s escrow holdings. The theory connects the ruling to the broader narrative around the government’s growing interest in blockchain-based reserves. The rejection of the indicative ruling leaves Ripple’s escrow untouched under the existing terms of the court’s final judgment, while also leaving Ripple with fewer options to modify its legal obligations, including the injunction that prevents institutional sales.

Experts have speculated for months on ways XRP could join Trump’s digital asset stockpile, and this development could theoretically make Ripple’s escrow more vulnerable to external negotiations, including the possibility of a government acquisition. Redbeard’s argument hinges on the assumption that the unresolved status of the escrow, combined with mounting regulatory pressures, may force Ripple into discussions it might not have otherwise entertained.

The U.S. Digital Asset Reserve proposal, announced by Donald Trump earlier this year, introduced the idea of the federal government holding blockchain-based assets as part of a new financial strategy. Although no XRP has been purchased under this plan, Redbeard suggests that the unresolved regulatory environment, combined with the court’s unwillingness to soften Ripple’s penalties, may indirectly align with such an acquisition strategy.

The escrow in question represents almost 40 billion XRP locked under Ripple’s program to release a portion monthly. For years, it has served as a mechanism to manage supply and maintain price stability. Redbeard’s post speculates that securing this escrow would give the U.S. government a significant foothold in digital cross-border liquidity.

While Redbeard’s post raised the question, the legal mechanics behind such a move are complex. Judge Torres’s ruling did not authorize any change to ownership or custody of Ripple’s escrow. However, she has left Ripple with no way to pursue XRP-related institutional dealings within the U.S. The escrow has long been a point of debate surrounding XRP’s tokenomics and Ripple’s broader strategy. Transferring it to a government would reshape XRP’s supply dynamics, governance influence, and future use in global payments.