Judge Torres Ruling Positions U.S. as Potential Buyer of 37B XRP in Ripple Escrow: Expert Argues

Brad Kimes, founder of XRPLasVegas and Digital Perspectives, has suggested a potential U.S. government involvement in the ongoing Ripple vs. SEC case.

Specifically, Kimes argued that the government could now be positioned as the acquirer of the 37 billion XRP held in Ripple’s escrow, forming the basis for the proposed national altcoin stockpile as part of the broader crypto reserve.

This bold speculation follows U.S. District Judge Analisa Torres’ recent unfavorable ruling in the Ripple-SEC case that further delays its resolution. According to Kimes, the ruling may open the door for government intervention.

Notably, since the leadership change at the SEC, the agency has softened its previously hostile stance on crypto, rolling back several lawsuits against crypto firms. However, the Ripple case remains particularly difficult to settle.

Following the August 2024 final judgment, Ripple and the SEC later agreed to pursue a settlement with terms more favorable than those granted by the court. However, they have yet to achieve success on this front.

Judge Torres’ Blockade 

On Thursday, Judge Analisa Torres denied a joint motion by the SEC and Ripple to vacate a permanent injunction and reduce Ripple’s penalty to $50 million.

The parties had cited exceptional circumstances and requested an indicative ruling. However, Judge Torres ruled their arguments unconvincing and insufficient to override the court’s final judgment.

While acknowledging the parties’ right to settle, the judge made clear they cannot circumvent the final decision. She emphasized that any relief must come through an appeal to the Second Circuit.

This latest ruling further delays a final resolution in the nearly five-year-long case, sparking renewed commentary among market watchers.

“Goodbye XRP Escrow”

In his analysis, Brad Kimes suggested that Judge Torres’ latest decision effectively “set up” the U.S. government as the potential “buyer” of the XRP tokens in Ripple’s escrow. He proposed that the government might aim to use the tokens to establish a national crypto asset reserve.

Did Judge Torres just set up the United States Govt as the buyer of the XRP escrow by denying Ripple the indicative ruling?

Goodbye XRP escrow. Hello US Digital Asset Stockpile? https://t.co/xiu0iddny9

— Digital Perspectives (@DigPerspectives) June 26, 2025

This idea has circulated within the XRP community for some time. Notably, the theory posits that Judge Torres could be legally inclined to vacate her ruling if national interests or executive intervention were to arise.

Proponents argue that if compelling evidence suggests continued litigation could threaten U.S. financial or diplomatic interests, the court might lift the injunction and reduce Ripple’s penalty, not as a matter of preference, but in deference to federal priorities.

Why This Is Unlikely

However, this remains a purely hypothetical scenario. To date, the U.S. government has shown no interest in acquiring crypto assets beyond Bitcoin. This fact significantly undermines the theory of a federal XRP purchase.

Additionally, there is little basis to suggest that Ripple would hand over the escrowed XRP to the government without compensation. Such a move would amount to an unprecedented philanthropic gesture, especially given that the escrowed tokens are worth around $100 billion. In contrast, Ripple’s pending request in court is merely for a $75 million reduction in its fine.

Moreover, Ripple’s escrow accounts for roughly 37% of XRP’s total circulating supply. A U.S. government acquisition of this magnitude would likely raise concerns across the broader crypto community about centralization and state influence over a decentralized project.