Ripple CEO Criticizes 60 Minutes for Omission of XRP Legal Ruling
Brad Garlinghouse, CEO of Ripple, participated in a 60 Minutes interview hosted by Margaret Brennan, discussing cryptocurrency regulations and Ripple’s ongoing legal challenges. The dialogue also addressed blockchain technology's evolving role in finance.
Garlinghouse highlighted the crypto industry's demand for clearer regulatory guidelines, stating that Ripple seeks regulation rather than deregulation. He asserted, "We haven’t been asking to be deregulated. We’ve been asking to be regulated," emphasizing the need for "clear rules of the road."
Despite this optimistic stance, Garlinghouse expressed frustration with the interview's portrayal of cryptocurrencies, particularly the omission of Ripple's recent legal victory.
In reference to Ripple’s lawsuit against the SEC, Garlinghouse noted a federal judge ruled that XRP, Ripple’s cryptocurrency, is not a security. However, the program ignored this ruling and featured comments from former SEC official John Reed Stark, who stated many judges still consider cryptocurrencies as securities.
Garlinghouse Defends XRP's Utility, Not Security
Garlinghouse, a Harvard Business School alumnus, rejected the notion that XRP is a security, asserting his understanding of securities law: “I went to Harvard Business School. I think I’m reasonably intelligent about something like, ‘What is a security?’ So never once had I considered the possibility – that, ‘Okay, maybe XRP’s a security.’”
He criticized the show's suggestion that cryptocurrencies lack utility, comparing the current skepticism towards blockchain technology to early perceptions of the internet. Garlinghouse emphasized that major financial institutions, such as JPMorgan Chase, are now adopting blockchain technology.
Garlinghouse pointed out that Ripple’s innovations in global payments were overlooked. He noted that Ripple’s payment solutions, utilizing XRP, have significantly improved cross-border transactions, making them faster and more cost-effective. Ripple facilitates billions in Know-Your-Customer (KYC) compliant transfers, which critics often neglect.
Crypto Community Criticizes 60 Minutes Coverage
The crypto community echoed Garlinghouse’s concerns regarding the 60 Minutes coverage, accusing the program of misinformation and downplaying cryptocurrency's potential. Critics objected to how the interview juxtaposed Garlinghouse’s insights with claims about cryptocurrencies facilitating illicit activities, an enduring narrative in the industry.
As of now, XRP trades at $2.40, reflecting a 5.20% decline. This drop is attributed partly to Garlinghouse's inability to address key points about Ripple’s operations and a significant legal decision. However, reports of a potential meeting between Garlinghouse and former President Donald Trump, along with speculation about SEC Chairman Gary Gensler’s resignation, may stimulate an XRP rally.