Ripple SEC Legal Battle Costs $150M – Brad Garlinghouse

Brad Garlinghouse remarked that the firm’s case against the SEC resulted in a $150 million loss on legal fees, blaming Gensler’s stance about crypto for the loss.

Ripple’s CEO, Brad Garlinghouse, has claimed the firm spent about $150 million in its ongoing legal fight against the top US regulatory body, the Securities and Exchange Commission. The ongoing court case over XRP’s security categorization has impacted the digital payment network and the coin’s price.

Gensler’s Impact on the Cryptocurrency Industry

The Ripple CEO added that Gary Gensler’s leadership approach is primarily responsible for the firm’s financial difficulty. When interviewed on CBS’s 60 Minutes segment, Brad Garlinghouse stated that the case has negatively impacted Ripple’s finances and operations.

Garlinghouse underlined that the “war against cryptocurrency” which Gensler spread is a more significant concern than the legal outcome between Ripple and the SEC. The SEC accused Ripple Labs of marketing XRP as unregistered securities in 2018.

This resulting court case negatively impacted the company’s development and finances. Nevertheless, Brad Garlinghouse remained adamant that XRP cannot be classified as a security.

“I have never once entertained the idea that XRP is a security,” he stated during the hour-long interview. However, when asked to explain why Ripple did not register XRP as a security, he was lost for words.

Formation of Fairshake PAC Was A Response to Gensler – Brad Garlinghouse

Moreover, Brad Garlinghouse argued that Gensler’s SEC leadership proved detrimental to Ripple’s profitability and the whole crypto ecosystem. The Ripple CEO accused the regulator of confusing crypto companies and investors regarding the laws that govern the ecosystem.

Fairshake was founded in 2023 to respond to the SEC’s activities. According to Garlinghouse, Ripple would not have been compelled to organize such a group if a pro-crypto SEC chair had been in place.

The SEC has also taken legal action against other crypto companies besides Ripple. Market data show that the US regulator has over 120 court cases against different cryptocurrency companies, causing uncertainty and fear among players in the sector.

Like Brad Garlinghouse, many other crypto players advocate for precise and uniform standards to govern the space. Despite the continuous legal and financial pressure, the Ripple CEO is optimistic about a more favorable regulatory climate.

Former President Donald Trump advocates for this point of view and could suggest a change in cryptocurrency oversight from the SEC to the Commodity Futures Trading Commission (CFTC).

Brad Garlinghouse Expresses Dissatisfactions With The Media

Furthermore, Brad Garlinghouse voiced dissatisfaction with the media’s portrayal of the court battle. He pointed out that the 60 Minutes interview omitted essential elements, like the federal judge’s decision that XRP is not a security.

Instead, the media outlet featured an interview with former SEC official John Reed Stark, who said that many US judges consider XRP a security. Garlinghouse noted that this information misrepresents the legal realities and may further hurt XRP’s market position.

Trump’s Support for Crypto Drives Market Surge

Moreover, Brad Garlinghouse noted Trump’s stance on Bitcoin and cryptocurrency has changed since calling them scams in 2021. The Ripple CEO stated that although he couldn’t explain specifics, the crypto community has embraced Trump’s backing for crypto assets.

Since winning the election, Trump has begun adopting measures that benefit the cryptocurrency industry. One of his first significant acts was replacing Gary Gensler as head of the US Securities and Exchange Commission (SEC) with Paul Atkins, a well-known advocate for digital assets.

Trump’s Pro-crypto Policies Fuel Market’s Surge

This change has already significantly influenced the market. For instance, Bitcoin soared beyond $100,000, reaching an all-time high of $103,600.

According to popular industry analyst Sarah Williams, the market is reacting to Trump’s actions and the possibility of clearer cryptocurrency restrictions under the new SEC leadership. Trump’s supportive stance on cryptocurrency influences the broader financial sector as more politicians and investors support the expanding use of digital currencies.

XRP currently trades at $2.45, down 3.1% in the last 24 hours.