Ripple CEO Paints XRP as Backbone of Global Finance, Not a Security

Ripple CEO Brad Garlinghouse has reiterated the company’s long-standing position on XRP during his testimony before the U.S. Senate Committee on Banking, Housing, and Urban Affairs on July 9, 2025. In a recent social media post shared by crypto enthusiast Bale, an image from Garlinghouse’s remarks highlighted the CEO’s emphasis on XRP’s role in enabling fast, low-cost, and scalable transactions. The post has reignited attention within the XRP community, underscoring the strategic importance Ripple places on its native asset within its broader vision for global financial infrastructure.

Garlinghouse, in his testimony, reaffirmed Ripple’s commitment to building a system that reduces friction in financial transactions. The company focuses on institutional clients, offering solutions that include cross-border payments, stablecoin issuance, and digital custody. He emphasized that XRP, supported by the XRP Ledger (XRPL), is a critical component of these efforts. The ledger, described as a decentralized, open-source blockchain, is designed to handle large-scale transactions with minimal latency and cost. Garlinghouse positioned XRP as a foundational asset in Ripple’s ecosystem, aligning its use with clear, practical applications rather than speculative investment.

The CEO also clarified Ripple’s regulatory stance during the hearing, emphasizing that XRP is not a security. This statement aligns with earlier court rulings, including a July 2023 decision where a U.S. court determined that most public XRP sales are not classified as securities, though certain institutional sales remain under scrutiny. Garlinghouse’s remarks before the Senate further reinforce Ripple’s strategy to work collaboratively with regulators while advocating for a clear and consistent legal framework for digital assets.

The ongoing legal battle between Ripple and the SEC has had significant implications for the XRP market and broader crypto industry. The lawsuit, initiated in December 2020, questioned whether XRP should be classified as a security under U.S. law. The SEC claimed Ripple conducted an unregistered securities offering by selling XRP, while Ripple argued the asset functions as a utility token and not a security. The case has set important precedents, particularly regarding how token sales are evaluated under securities law. Ripple’s partial victory in 2023 contributed to a resurgence in XRP trading volumes, with platforms such as Bitget Exchange reintroducing the token for trading.

The outcome of this case is expected to influence how other tokens are classified and regulated, shaping the future of digital asset compliance. Ripple’s approach to integrating XRP into existing financial systems, combined with its focus on regulatory alignment, reflects a broader industry trend toward institutional adoption of blockchain technology. As the legal proceedings continue, the implications for XRP and similar assets will depend on how courts and regulators interpret the evolving landscape of digital finance.

What Is XRP vs SEC: Crypto Lawsuit Explained https://www.bitget.com/wiki/what-is-xrp-vs-sec

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