Ripple CEO Brad Garlinghouse recently stated that while XRP has gained a relatively clear legal status in court rulings, this does not mean the US crypto industry has emerged from a period of regulatory uncertainty. He believes that for more institutions to truly enter the market, legislation is still needed to establish unified standards for other digital assets.

XRP has been adjudicated.

At an event, Garlinghouse stated that Ripple has obtained a clear ruling from federal court regarding the nature of XRP after a four-year, approximately $150 million lawsuit. The court's determination that XRP is not a security places Ripple in a relatively unique position within the current US cryptocurrency regulatory discourse.

However, he emphasized that a single company's victory cannot replace an industry-wide legal framework. For most U.S. digital asset companies, what is truly lacking is not individual case outcomes, but written rules applicable to a wider range of assets.

Banks remain concerned about policy reversals.

Garlinghouse stated that in his conversations with executives at US investment and commercial banks, the core concern he heard was not the current regulatory stance, but rather whether future policies would shift again. Even though current SEC Chairman Paul Atkins has a relatively friendly attitude towards digital assets, financial institutions remain worried that this position cannot be sustained in the long term.

He believes that administrative support can change with government shifts, and only legally enshrined support provides stability. This is why, while banks acknowledge the potential of blockchain technology and digital assets, they tend to remain cautiously cautious in the absence of long-term legal protection.

• The lawsuit between Ripple and the SEC has lasted approximately four years.
• The company stated that related legal expenses amounted to approximately $150 million.
• The Senate Banking Committee passed the relevant bill on May 14.

The bill has been voted on by the committee.

Garlinghouse also noted that although the CLARITY bill passed the Senate Banking Committee on May 14 with a bipartisan vote of 15 to 9, there are still differing opinions within the crypto industry regarding some of the bill's provisions, with the main controversy focusing on DeFi-related content and ethical clauses.

However, his stance is clear: the industry should reduce internal wrangling over the details of the bill and instead push it forward. He believes that a law that, while not perfect, provides basic certainty is more conducive to the industry's expansion in the United States than remaining in a state of regulatory ambiguity.

Ripple Review and SEC Litigation

Garlinghouse also used this opportunity to review the consequences of the SEC's enforcement action against Ripple during Gary Gensler's tenure. He stated that the SEC's focus on Ripple as a primary enforcement target was a strategic miscalculation, because Ripple had sufficient resources to sustain its legal battles, rather than choosing to settle or withdraw like some weaker players.

In his view, if regulators had targeted weaker, smaller companies at the time, it might have been easier to establish a precedent favorable to the SEC. However, Ripple ultimately chose to defend itself and obtained a court ruling that was recorded in the public judicial record, an outcome that has influenced the legal environment for subsequent digital asset cases.