Ripple CEO Brad Garlinghouse has revealed new details about the company's four-year legal battle with the U.S. Securities and Exchange Commission (SEC), disclosing that Ripple spent approximately $150 million in legal fees and saw its U.S. business slow significantly for nearly five years. Garlinghouse emphasized that shutting down would have risked hundreds of jobs, so he and the team chose to fight on.
Lawsuit Origins and Personal Charges
The SEC not only sued Ripple but also named Garlinghouse personally for his XRP sales. Regulators offered to drop the individual case in exchange for a fine, but he refused, maintaining that both he and Ripple acted within the law. Garlinghouse noted the civil suit carried steep penalties but was not criminal. During multiple visits to the SEC between 2017 and 2019, he said agency officials never indicated they considered XRP a security.
XRP vs Bitcoin: Speed and Cost Comparison
Garlinghouse highlighted key differences: XRP transactions settle in about 4 seconds at a cost of less than one cent, while Bitcoin transactions take roughly 10 minutes and cost around $10. He explained that Ripple develops and sells financial software to banks and institutions using the open-source XRP Ledger for fast, low-cost cross-border payments. Though Ripple holds significant XRP reserves, it does not control the ledger, and XRP functions more like Bitcoin than corporate stock.
| Aspect | XRP | Bitcoin |
|---|---|---|
| Average transaction speed | 4 seconds | 10 minutes |
| Average fee per transaction | Less than 1 cent | ~$10 |
| Intended use | Bank and institutional payments | Peer-to-peer digital cash |
SEC Controversy and Final Outcome
Garlinghouse criticized the SEC's approach as “outdated,” saying it tried to apply financial rules from previous decades to emerging blockchain technology. Securities typically grant holders equity or voting rights, but XRP buyers received no shares or dividends from Ripple. He described the SEC’s legal tactics as “distasteful” and “maybe unethical.” Ripple ultimately prevailed after four years in court, though appeals were considered under the former SEC chair. Garlinghouse said a change in SEC leadership led to more open dialogue between the agency and crypto firms. Ripple remains a private company, having raised capital through equity rounds in 2012, 2015, and 2016. While this legal chapter has closed, the need for clear U.S. crypto regulation remains.