Ripple Labs Locks 700 Million XRP in Escrow After SEC Lawsuit Resolution

Ripple Labs Inc has placed 700 million XRP in escrow as part of its strategy to manage supply, following the resolution of a lawsuit with the US Securities and Exchange Commission (SEC).

Key Points on Ripple's Strategy

Ripple releases 1 billion XRP monthly for institutional sales, operational expenses, and liquidity support.
A significant portion of released tokens is often returned to escrow to stabilize market supply.
In the previous month, Ripple sent 700 million XRP back to escrow without executing the scheduled release.
The company holds several billion XRP outside of escrow, allowing it strategic control over token availability.
CEO Brad Garlinghouse announced plans to reduce XRP sales, potentially alleviating selling pressure.
Ripple controls over 40% of total XRP supply, impacting the coin's market outlook.
XRP was priced at $2.121, down 2.62% in the last 24 hours.

Legal Context

A court ruled that XRP sales on public exchanges are not securities, but institutional sales require compliance.
The SEC filed an appeal arguing Ripple's promotions led to profit expectations from retail sales.
Following a shift in the regulatory landscape, the SEC dismissed the appeal, prompting Ripple to settle by paying $50 million of a $125 million fine.
The conclusion of the legal dispute allows Ripple to focus on strengthening its market position and adhering to regulations.