$100B XRP at Risk? Could the U.S. Government Seize Ripple’s Escrow?

Sean Williams
XRP

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  • Ripple holds 35.6B XRP in escrow, worth about $100B.
  • Analysts debate if the U.S. could claim XRP as part of a sovereign wealth fund.
  • Legal and technical hurdles make such a takeover unlikely but not impossible.

The debate around government ownership of private assets has reached the crypto sector, with pundits now questioning whether Washington could one day take control of Ripple’s massive XRP escrow. The speculation follows the White House’s recent announcement that it will expand stakes in private firms, sparking comparisons to Ripple’s unique holdings.

U.S. Eyes Expansion Into Private Assets

Kevin Hassett, director of the National Economic Council, confirmed that Washington plans to broaden its direct investments, pointing to last week’s Intel deal as a blueprint. The government acquired nearly 10% of Intel, marking a step toward building a sovereign wealth fund—a vision President Donald Trump continues to endorse.
The move drew both praise and criticism, with Trump defending the Intel purchase on Truth Social as a strategic investment rather than interference. Meanwhile, Congress is weighing the Freedom from Government Competition Act of 2025, which would restrict federal agencies from directly competing with private companies.

Ripple’s XRP Escrow in the Spotlight

As the sovereign wealth fund discussion gained momentum, crypto analyst Zach Rector revived speculation about Ripple’s escrow. Ripple currently holds 35.6 billion XRP—valued at around $100 billion—locked across 14 wallets. Rector suggested Washington might eventually view this stash as an attractive asset if it expands its holdings beyond traditional firms.

Some argue it is technically feasible. Vet, an XRPL validator, explained that Ripple could transfer control of its escrow in a single step by altering the accounts’ regular keys, effectively shifting ownership to another entity. However, he doubted such an arrangement would realistically occur.

Also Read: $243M in 9 Assets: XRP Ledger Tops RWA Charts With High-Value Tokenizations

Historical Precedents and Legal Doubts

Legal experts have also weighed in. Attorney Jeremy Hogan previously noted that Washington might view XRP less as a cryptocurrency and more as a strategic reserve asset. He compared the scenario to the 1933 gold confiscation, arguing that if leaders believed XRP could hedge against global risks, they would not hesitate to act.
Others, including Digital Perspectives founder Brad Kimes, speculated that recent court developments in the SEC vs. Ripple case could open doors for government intervention. Still, many in the community dismiss the idea as far-fetched, emphasizing the political and legal challenges such a move would entail.

While the possibility of the U.S. government seizing Ripple’s escrowed XRP remains speculative, the conversation underscores growing intersections between national strategy and digital assets. Whether XRP becomes a tool of sovereign policy or remains firmly in private hands may depend on how Washington balances innovation with control.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses

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