Ripple CEO Drops XRP Bombshell

Financial expert Levi Rietveld shared a notable video clip of Ripple CEO Brad Garlinghouse, in which Garlinghouse addressed the ongoing regulatory situation surrounding XRP and its legal classification.

In the video, Garlinghouse revisited the critical legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), underscoring the importance of Judge Analisa Torres’ ruling in July 2023 and its continuing implications for the digital asset market.

Garlinghouse explained that the SEC’s primary argument in its lawsuit was centered on whether XRP was a security. He stated, “The SEC was arguing most specifically, it was this idea that XRP, the digital asset that Ripple uses in our technology, was a security. And that was really what they cared about.”

Garlinghouse noted that Judge Torres ruled XRP is not a security in itself, a decision he described as “formative” for the industry. He added that Ripple remains committed to advocating for clearer regulation of digital assets, expressing optimism about improvements under new regulatory leadership in the future.

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Clarification on Institutional and Retail Transactions

When the interviewer asked whether the court ruling made any distinction between institutional and retail investors, Garlinghouse clarified the legal nuance. He responded that while XRP itself is not a security, contracts or arrangements involving XRP can still fall under securities law if structured as investment contracts.

Specifically, he said, “What it said, actually, is that just like if you package up real estate or you package up even pork bellies, if you put those into an investment contract, the investment contract is a security. But the ruling was very clear that no matter what, XRP in and of itself is not a security.”

This statement aligns with Judge Torres’ July 2023 ruling, which determined that XRP sales to retail investors through programmatic exchanges did not violate securities laws, but sales to institutional investors under written contracts did. That ruling gave a substantial boost to retail market confidence in XRP, while institutional clarity remained more limited.

Recent Developments and Next Steps in the Case

Garlinghouse’s remarks also come in the context of the case’s latest developments. Following the initial ruling and Judge Torres’ subsequent decision in August 2024, which reduced the SEC’s penalty demand from $2 billion to $125 million, both Ripple and the SEC moved toward seeking a settlement.

However, their joint motions in 2025 to dismiss their appeals and accelerate settlement were denied by Judge Torres, leaving the final resolution of the case pending.

In his comments, Garlinghouse reiterated Ripple’s ongoing efforts to champion regulatory clarity, indicating that the company continues to work with policymakers to achieve more precise definitions and rules for digital assets. His reference to a “change in the guard” reflected hope that a shift in regulatory leadership could lead to more favorable and transparent oversight of the industry.

Levi Rietveld highlighted this interview to his audience as a significant update on Ripple’s legal standing and Garlinghouse’s position on XRP’s classification. The video underlines the enduring relevance of the Torres rulings while demonstrating Ripple’s intention to pursue greater regulatory certainty for digital assets.

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