- Ripple released one billion XRP from escrow in early June as part of a routine governance smart-contract distribution.
- Political ETF hype fueled by online influencers, yet Morgan stressed legal frameworks protect escrow from direct federal claims.
Ripple lawyer Bill Morgan has dismissed recent claims that the U.S. government plans to seize XRP held in Ripple’s escrow account. Online chatter suggested that Washington could tap those funds as part of a broader digital‑asset reserve strategy. Morgan rejected that idea, stating flatly that no such plan exists.
No it won’t. https://t.co/48zQvTBUg9
— bill morgan (@Belisarius2020) June 21, 2025
At the same time, social‑media posts have linked XRP to the Federal Reserve’s FedNow payment network. One viral thread claimed “100% confirmation” of XRP use in FedNow transactions. However, while Volante Technologies—the FedNow pilot partner—uses Ripple’s technology for cross‑border messaging, there is no evidence that the Fed actually moves funds in XRP.
ETHNews noted that Ripple released 1 billion XRP from escrow in early June, divided over three transactions valued at roughly $2.2 billion. ETHNews analysts connected this event to talks of a U.S. crypto reserve, feeding speculation that XRP might serve as a digital asset backing for national finances. Morgan argued, however, that escrow releases are routine and governed by smart‑contract schedules created by Ripple years ago.
Inflated rumors gained traction as crypto‑focused commentators compared the possibility to the rise of Bitcoin ETFs, suggesting a once‑unlikely event could occur again. Yet Morgan noted that government bodies follow strict legal frameworks when handling assets. “They cannot simply reach into a private firm’s escrow account,” he explained.
XRP (Ripple) is trading at $2.11, experiencing a -1.27% price decline in the last 24 hours and a -2.50% decline over the past 7 days. Despite this short-term correction, XRP maintains a market capitalization of approximately $124.48 billion, placing it as the fourth-largest cryptocurrency by market cap.
XRP remains 331.2% up year-over-year, illustrating strong performance from 2024 lows. The current trading range is between $2.09 and $2.14, with resistance appearing near $2.30–$2.40, while support remains near $2.00–$2.05.
The recent decline is attributed to a combination of market-wide altcoin correction and profit-taking from long-term holders. According to data from Cointelegraph, whale wallets that accumulated during the 300% rally have been offloading nearly $68.5 million in XRP daily, although this selling pressure appears to have slowed significantly in the past 48 hours.
ETHNews also reports that large wallets have paused their distribution, suggesting that the market may be stabilizing after this wave of profit realization.
Meanwhile, the broader narrative surrounding XRP ETF speculation continues to build. ETHNews analysts point to increasing institutional demand and regulatory clarity, which may pave the way for a spot XRP ETF proposal in the U.S. or Canada.
Vlad Tasevski, Chief Innovation Officer, @PurposeInvest, and his team, joined us to open the market to celebrate the Company's new listing of the Purpose XRP ETF (TSX:XRPP). $XRPP offers Canadian investors direct spot exposure to XRP, the digital asset powering fast, low-cost… pic.twitter.com/XONDGdZKmD
— Canada's Markets (@tsx_tsxv) June 20, 2025
A Canadian XRP ETF has already launched, and discussions within the SEC suggest that XRP may eventually be viewed similarly to Bitcoin and Ethereum — particularly given its legal standing after the Ripple vs. SEC ruling in 2023, where XRP was determined to be not a security when traded on public exchanges.
On the ecosystem side, Ripple’s partnerships in cross-border settlements and central bank digital currency (CBDC) infrastructure continue to expand. Ripple Labs recently reaffirmed collaborations with several Asia-Pacific central banks for launching tokenized remittance systems using the XRPL (XRP Ledger).
Technically, XRP is in a cooling phase after its parabolic rally, forming what could become a bullish flag if support at $2.00 holds. Reclaiming the $2.30 level with volume could reinitiate a push toward the $3.00–$3.40 all-time high zone.
However, a breakdown below $2.00 could expose XRP to deeper retracements toward $1.85 or $1.70, which coincide with Fibonacci support and key moving averages.
