Ripple’s Brad Garlinghouse announces the end of legal battle with SEC

Ripple CEO Brad Garlinghouse says the company’s long legal fight with the SEC is about to end. In a recent interview, he hinted that Ripple and the SEC will settle their dispute next week after a private meeting.

For years, Ripple and the SEC have been at odds over whether XRP, the digital asset used by Ripple, is a security. Brad has always maintained that XRP is not a security, and a judge recently agreed with him. He said:

“This should have never become a partisan issue. We want regulation, we want clarity.”

Brad has criticized Joe Biden’s approach to crypto time and time again. “Five years ago, I said there was no clarity in the rules. Now, five years later, after being sued by the SEC, there’s still no clarity,” he said. 

He blamed SEC Chairman Gary Gensler for making things worse, saying:

“Gensler thinks everything is a digital security. Judges have ruled against him repeatedly, but he keeps fighting.”

When asked about his discussions with the Biden administration, Brad mentioned a recent crypto roundtable in Washington, D.C., attended by both Democrats and Republicans. “It was good to see them listening to the industry,” he said.

He added that even though Democrats have lagged behind Republicans in embracing crypto, the conversation was a positive step. Brad also reflected on the one-year anniversary of the day XRP was legally declared as not a security. “That was huge for the industry,” he said.

But still: 

“We can’t keep going to court over every token. We need clear rules.”

Brad also touched on international crypto regulations, pointing out that many countries have created frameworks for crypto regulation. “It’s frustrating that the U.S. can’t do the same,” he said, adding that:

“We’ve spent over $150 million and three years fighting in court. Other countries are moving forward while we’re stuck in litigation.”

He mentioned recent legislative efforts, such as the Fit 21 Act, which has passed the House and is being considered by the Senate. “There’s momentum on both sides of the aisle,” Brad said. 

He also spoke on JD Vance’s support for crypto, adding that Vance has proposed legislation that might be taken up by the Senate. On Gensler, however, he maintained that:

“Gensler has been at war with crypto. The OCC and other elements of the banking industry have been anti-crypto, and it’s not helping us.”

On the benefits of clear regulatory frameworks, Brad said, “The internet thrived in the U.S. because we had clear regulations in the late ’90s. We need the same for crypto.” He thinks without clarity, entrepreneurs and capital will flow to other countries.

“Most people in the crypto industry want to follow the rules. We’ve been asking for clear rules. Hiring more lawyers to bring more lawsuits isn’t the way to do it.”

Brad was asked about his current relationship with the SEC and if there are any ongoing settlement talks. He replied, “I can’t comment on that specifically, but we expect a resolution very soon.”