Ripple CEO Brad Garlinghouse recently stated that although XRP has gained a relatively clear legal status following the court ruling, this does not mean the U.S. crypto industry has emerged from the period of regulatory uncertainty. He believes that to enable more institutions to truly enter the market, legislation is still needed to establish uniform standards for other digital assets.
A ruling has been issued for XRP.
Garlinghouse said at an event that, after a four-year, $150 million litigation, Ripple has obtained a clear ruling from the federal court regarding the nature of XRP. The court determined that XRP itself is not a security, placing Ripple in a relatively unique position within the current U.S. cryptocurrency regulatory debate.
But he emphasized that a single company’s legal victory cannot replace a regulatory framework at the industry level. What most U.S. digital asset companies truly lack is not case-by-case outcomes, but statutory rules applicable to a broader range of assets.
Banks remain concerned about policy reversals.
Garlinghouse said that during his conversations with executives at U.S. investment and commercial banks, the primary concern he heard was not the current regulatory stance, but whether future policies might shift again. Even though current SEC Chair Paul Atkins has taken a relatively favorable position toward digital assets, financial institutions remain concerned that this stance may not be sustainable in the long term.
He believes that administrative support can change with government transitions, and only provisions enshrined in law are truly stable. For this reason, although banks recognize the potential of blockchain technology and digital assets, they remain cautious in the absence of long-term legal safeguards.
- Ripple's lawsuit with the SEC has lasted approximately four years.
- The company stated that the related legal expenses amounted to approximately $150 million.
- The Senate Banking Committee passed the relevant bill on May 14.
The bill has passed committee vote.
Garlinghouse also noted that while the CLARITY Act passed the Senate Banking Committee on May 14 by a bipartisan vote of 15 to 9, there are still differing opinions within the crypto industry regarding certain provisions of the bill, with main points of contention centered on DeFi-related content and ethical clauses.
However, his stance is clear: the industry should reduce internal disputes over legislative details and instead push the bill forward. He believes that a law that, while imperfect, provides basic certainty is more beneficial for industry growth in the U.S. than remaining in a state of regulatory ambiguity.
Ripple Review and SEC Lawsuit
Garlinghouse also used this opportunity to review the consequences of the SEC’s enforcement action against Ripple during Gary Gensler’s tenure. He stated that the SEC’s decision to target Ripple as a primary enforcement focus was a strategic misstep, as Ripple had sufficient resources to continue litigating, unlike some weaker participants who opted to settle or exit.
In his view, if regulators had targeted weaker, smaller companies at the time, it might have been easier to establish a precedent favorable to the SEC. However, the outcome was that Ripple chose to fight back and obtained a court ruling entered into the public judicial record, which has since influenced the legal landscape for subsequent digital asset cases.