Ripple Almost Shut Down and Distributed XRP After SEC Lawsuit, CEO Reveals
Summary
Ripple CEO Brad Garlinghouse revealed that the company seriously considered shutting down and distributing its XRP holdings to shareholders following the 2020 lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The legal battle, which cost Ripple approximately $150 million in legal fees, created significant operational uncertainty and caused the company's U.S. business to remain largely stagnant for several years.
The legal dispute centered on whether XRP sales constituted unregistered securities. In a 2023 ruling, Judge Analisa Torres found that XRP sales on public exchanges were not securities transactions, though institutional sales were treated differently. The case reached a conclusion in August 2025 after both parties withdrew their appeals, coinciding with a shift in the SEC's regulatory approach under new leadership toward a more deregulatory stance.
Garlinghouse noted that while dissolving the company and distributing XRP might have been an "easier" path, the company ultimately chose to continue operations to avoid the devastating impact of mass layoffs and the loss of the company's future.
(Source:Bitcoin News)