- The SEC’s decision to end its investigation into Ripple (XRP) has removed a major barrier, enabling the company to expand in the U.S. market after spending over $150 million in legal fees defending itself.
- Ripple CEO Brad Garlinghouse sees the Trump administration’s pro-crypto policies and forthcoming regulatory clarity from Congress as catalysts for domestic growth, with the company already signing more U.S. deals post-election.
- With 95% of its current customers being non-U.S. financial institutions, Ripple aims to modernize global cross-border payments, leveraging blockchain technology to challenge outdated systems like SWIFT.
The Securities and Exchange Commission has concluded its investigation into Ripple, a prominent cryptocurrency exchange, marking a significant victory for the company and the broader digital assets industry. Ripple CEO Brad Garlinghouse, in an interview on Fox Business, expressed his enthusiasm for the outcome, which he believes will unlock the U.S. market for Ripple and other crypto firms. The investigation, which began several years ago, cost Ripple over $150 million in legal fees, but Garlinghouse maintained that the SEC was on the wrong side of both the law and history.
With the U.S. market previously hostile to crypto due to regulatory headwinds, Ripple had focused on international growth, with 95% of its customers being non-U.S. financial institutions, including major players like HSBC and BBVA. Garlinghouse highlighted the massive opportunity in modernizing cross-border payments, a market still dominated by the 50-year-old SWIFT network, and noted that markets like Japan are beginning to adopt Ripple’s technology, such as its XRP cryptocurrency. The end of the SEC investigation, coupled with a pro-crypto stance from the Trump administration, is already driving renewed domestic interest, with Ripple signing more U.S. deals in the six weeks following Trump’s election than in the prior six months.
President Trump has actively supported the crypto industry, speaking at the Digital Assets Summit in New York City and signing executive orders to strengthen American leadership in digital financial technology and establish a strategic Bitcoin reserve. Garlinghouse praised these moves, noting that U.S. financial institutions, previously hesitant to engage with crypto, are now leaning in, a shift he believes will benefit the entire industry. He emphasized that the U.S. has lagged behind other global markets in crypto adoption, but these changes signal a catch-up phase that will allow American companies to thrive.
Regulatory clarity remains a key focus for Ripple and the industry. Garlinghouse commended lawmakers like Senator Cynthia Lummis and Congressman French Hill for their efforts to define which cryptocurrencies are commodities, regulated by the Commodity Futures Trading Commission, and which are securities, under the SEC’s purview. A federal judge previously ruled that XRP is not a security, contradicting the SEC’s stance, and Garlinghouse sees forthcoming legislation, including a stablecoin bill and a market structure bill, as critical to codifying this clarity. He anticipates both bills passing within the next six months, providing a stable framework for innovation, job creation, and capital formation in the U.S.
For Ripple, this regulatory progress means the ability to engage customers without fear of legal repercussions, a concern that has lingered for years. Garlinghouse believes these developments will not only fuel Ripple’s growth but also position the U.S. as a leader in the future of finance, a transformation he expects to unfold over the next decade or two, impacting payments, real estate, and securities transactions alike. With the SEC investigation behind it and a supportive government environment emerging, Ripple is poised to capitalize on both domestic and global opportunities in the evolving blockchain landscape.
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