Ripple CEO Brad Garlinghouse Regrets Delayed Regulatory Engagement Amid Ongoing SEC Lawsuit
Ripple Labs CEO Brad Garlinghouse recently expressed regret over not engaging with U.S. regulators sooner regarding cryptocurrency trading, as his company’s XRP token remains entangled in a legal dispute with the Securities and Exchange Commission (SEC).
Speaking at DC Fintech Week on October 24, Garlinghouse told CNBC that he has made “far more trips to DC in the past few years” than ever before, largely due to the ongoing lawsuit involving Ripple and the SEC. Reflecting on the situation, he acknowledged the company’s failure to communicate earlier with U.S. regulators and suggested that proactive dialogue might have prevented their current legal challenges.
“I look back and regret that. I think we made a mistake by not engaging sooner. We’re now trying to make up for lost time,” Garlinghouse admitted.
The SEC’s case, filed earlier this year, accused Ripple of raising $1.3 billion through the unregistered sale of XRP, claiming the token constituted an unregistered security. The lawsuit further alleged that Ripple created profit expectations among investors. Ripple has since announced its intention to file a cross-appeal to challenge the SEC’s ruling on institutional sales, setting the stage for a protracted legal battle that could have lasting effects on the U.S. cryptocurrency landscape.
Garlinghouse also voiced concerns about the U.S. falling behind other nations in the realm of cryptocurrency adoption and regulation. He pointed out that countries like Japan, the United Kingdom, Singapore, the United Arab Emirates, and Brazil are far ahead in developing clear crypto policies. In contrast, he criticized the U.S. for its slow progress, attributing it largely to misinformation and aggressive regulatory actions by SEC Chairman Gary Gensler.
“The U.S. is lagging behind, and it’s for reasons that don’t make sense. It’s driven by misinformation, particularly under Gensler’s leadership and people like Elizabeth Warren spreading fear that crypto is a threat. That’s simply not the case,” Garlinghouse stated.
The 2024 Global Crypto Adoption Index from Chainalysis ranks the U.S. fourth, behind Indonesia, Nigeria, and India. According to the report, crypto activity has grown across countries of all income levels, but there’s been a noticeable decline in high-income nations since early 2024.
As the legal battle continues, Garlinghouse remains critical of the U.S. approach to crypto regulation, arguing that the country risks being left behind in the fast-evolving global digital economy.
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