Ripple’s Fight for Regulation
In a recent appearance on CBS 60 Minutes, Ripple CEO Brad Garlinghouse candidly discussed the company’s ongoing legal struggle with the U.S. Securities and Exchange Commission (SEC). He revealed that Ripple has spent in excess of $150 million in legal fees defending against claims that XRP is an unregistered security. Garlinghouse pointed a finger at SEC Chair Gary Gensler, accusing him of spearheading a wider “war on crypto.”
Garlinghouse was forthright about the SEC’s stance on XRP, stating, “I consider myself reasonably knowledgeable on matters like securities. It never crossed my mind that XRP could be classified as a security.” The prolonged legal dispute has not only strained Ripple’s finances but has also played a pivotal role in reshaping the cryptocurrency industry’s push towards regulation.
In response to what they view as an unjust regulatory environment, Ripple, alongside other firms, has launched Fairshake—a super PAC aimed at advocating for fair regulation. Established in 2023, Fairshake is a direct countermeasure to Gensler’s stringent approach towards the crypto sector. Garlinghouse remarked, “If another individual were the SEC Chair, I doubt this organization would exist.”
The crypto industry, according to Garlinghouse, is not seeking exemptions but rather clear and equitable guidelines under which to operate.
Disappointment with “60 Minutes” Coverage
Despite the significance of the interview for the crypto world, Garlinghouse expressed dissatisfaction with how CBS 60 Minutes reported the segment. He noted the omission of critical details, such as a recent Federal Judge’s ruling that XRP cannot be classified as a security, which the program failed to highlight. Instead, the show allotted time to Spencer, a former SEC official, to reiterate claims that XRP might be a security.
Garlinghouse described this as a lost opportunity, emphasizing that such misinformation not only harms Ripple but the entire cryptocurrency industry. “The misinformation doesn’t just hurt Ripple; it affects the whole industry,” he stated.
Effect on XRP’s Price
The ongoing SEC case has exerted significant pressure on XRP, impacting both its market perception and price performance. Following the interview, XRP’s price dipped to $2.40, marking a 5% decline within a 24-hour period. While many investors have set their sights on the $3 price level for XRP, Garlinghouse underscored that the stakes of this legal battle transcend mere price concerns. He articulated that the fight is about securing a rightful place for cryptocurrencies in the global financial landscape.
