Ripple CEO Brad Garlinghouse confirmed in an interview with FOX Business that financial institutions, particularly banks, are increasing their engagement with Ripple and XRP following the US Securities and Exchange Commission’s (SEC) decision to end its investigation into the company. The development marks a significant turning point for Ripple and potentially the broader digital asset sector in the United States.
Ripple CEO: US Market Reawakens
Garlinghouse, reflecting on Ripple’s multi-year legal battle with the SEC, described the conclusion as an industry-wide win. He expressed optimism, stating, “Ripple is really amongst the very first crypto companies to get sued by the SEC. We said then, when it started, that the SEC was going to be on the wrong side of the law as well as on the wrong side of history. It took longer than we would have liked… more than $150 million of legal bills, but we’re thrilled with the ultimate outcome. It allows us to really unlock the US market.”
Traditionally focused on cross-border payments, Ripple faced challenges in the US market amidst regulatory scrutiny. Garlinghouse highlighted that currently, around 95% of Ripple’s client base consists of non-US financial institutions, including significant players like HSBC and BBVA. With the SEC’s investigation concluding, Ripple is experiencing a noticeable uptick in domestic engagement.
He provided a historical comparison, sharing, “In the six weeks after President Trump was elected, we signed more deals in the United States than we had in the previous six months. These are very innovative technologies. I think they’re going to play out over 10, even 20 years in terms of how they integrate and rewire the financial infrastructure of the United States.” This vision spans various sectors, including payments and potentially real estate and securities transactions, hinting at a transformative shift in financial operations.
The rising interest corresponds with two significant executive orders initiated by President Trump, which aim to “strengthen American leadership in digital financial technology.” One of the key initiatives focuses on creating a “Strategic Bitcoin Reserve and a U.S. digital asset stockpile.” Speaking at the Digital Asset Summit in New York City, President Trump stated, “You will unleash an explosion of economic growth, and with the dollar-backed stablecoins, you’ll help expand the dominance of the US dollar.”
Garlinghouse described the changing atmosphere as a profound “unlock” for U.S. financial entities. He noted, “Banks that were really hesitant and nervous about touching crypto technologies or even helping their customers, those banks and those financial institutions are leaning in now, and that’s a big deal—not just for Ripple, but for the whole industry.” The shift signals a new era where traditional financial institutions might feel more comfortable innovating with crypto technologies.
The conversation naturally drifted towards the ongoing discussions regarding regulatory frameworks in Washington. Garlinghouse commended lawmakers like Senator Cynthia Lummis and Congressman French Hill, who are at the forefront of initiatives to clarify how digital assets are classified and regulated. He emphasized that “it can’t just be executive orders. It needs to be codified with legislative efforts by Congress,” referring to the potential for significant legislation surrounding stablecoins and market structures that would provide the clarity the industry has eagerly awaited.
Moreover, Garlinghouse reinforced the legal validation of XRP’s status, pointing out that a federal judge had declared XRP to be a commodity, in direct opposition to the SEC’s classification. This ruling, combined with the ongoing discussions in Congress, could bolster Ripple’s stature both within the U.S. and international markets.
As Ripple envisions the future, Garlinghouse underscores the vast potential for modernization in global payment systems, long dominated by outdated infrastructures such as SWIFT. He remarked, “That’s a technology architecture developed 50 years ago. There’s an opportunity to modernize that […] The US is finally unlocked, and I think people are underestimating how big that change is.” This modernization, he believes, can lay the groundwork for innovative financial solutions.
Anticipating a clarifying regulatory environment, Ripple expects the integration of blockchain technologies into mainstream financial systems to accelerate. “That will allow this innovation, allow more job creation, more innovation, and frankly capital formation here in the United States,” Garlinghouse concluded. As of now, XRP is trading at $2.4295.
Featured image from YouTube, chart from TradingView.com
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
