Ripple CEO Brad Garlinghouse recently made an appearance on Fox Business to discuss the conclusion of the legal battle against the SEC, coinciding with the official appointment of the new Securities and Exchange Commission chairman. During the interview, Garlinghouse highlighted the positive shift in the US government’s stance on cryptocurrency and identified a key area in crypto regulation that still requires clarity.
In a tweet following his interview with Fox Business host Liz Claman, Garlinghouse expressed gratitude for the opportunity to discuss Ripple’s acquisition of prime broker Hidden Road, a significant move in the crypto market valued at nearly $2 billion. He emphasized that just a year ago, such an acquisition would have been inconceivable due to the adversarial regulatory environment led by agencies like the SEC and IRS. However, with recent developments, including the appointment of new leadership, Ripple is now transitioning into a new phase characterized by institutional involvement in decentralized finance.
Garlinghouse revealed that the SEC case has been officially resolved under the new administration, led by Chairman Gary Gensler. He criticized the previous SEC leadership for their hostile approach towards the crypto industry, stating that they were “on the wrong side of the law.” In terms of the $125 million fine imposed on Ripple, Garlinghouse explained that the company had set aside the funds in escrow for future payment to the SEC. However, given the improved regulatory landscape, Ripple is now in the process of reclaiming a portion of the funds, including accrued interest.
Moving forward, Garlinghouse disclosed that Ripple is in negotiations to satisfy the remaining payment obligations to the SEC and the US government using XRP, the digital asset associated with Ripple. This strategic move reflects Ripple’s commitment to navigating the evolving regulatory environment while leveraging innovative solutions within the crypto space.
Overall, Garlinghouse’s insights shed light on Ripple’s proactive approach to regulatory compliance and its strategic positioning in the dynamic crypto market. As the industry continues to mature, Ripple’s ability to adapt and capitalize on emerging opportunities underscores its leadership in driving innovation and growth within the digital asset ecosystem.