Ripple once weighed shutting down and handing XRP to shareholders, CEO says
Ripple’s Brad Garlinghouse says he and co-founder Chris Larsen considered winding the company down and handing its XRP to shareholders before deciding to fight the 2020 lawsuit.
Jul 12, 2026, 6:09 a.m.
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Summary
Ripple came close to shutting down rather than fighting the U.S. Securities and Exchange Commission, Chief Executive Brad Garlinghouse said, describing a decision he and co-founder Chris Larsen faced after the agency sued the company in 2020.
Speaking at the University of Kansas School of Business earlier this week, Garlinghouse said the two seriously considered winding Ripple down and distributing its XRP holdings to shareholders. He described that as the easier path, against a government he said had “infinite power and resources.”
Ripple holds a large amount of XRP, and Garlinghouse said the company could have handed it to shareholders on a pro rata basis and dissolved, effectively ending the case by ending the company.
But they chose to fight because shutting down would have cost hundreds of jobs. “I’m glad in retrospect, but that was not obvious at the time,” he said.
The SEC sued Ripple in 2020, alleging it had sold XRP as an unregistered security, and named Garlinghouse and Larsen personally. Garlinghouse said he met agency officials four times between 2017 and 2019 without a lawyer and was never told XRP might be treated as a security, which shaped his view that the company had been denied clear rules.
He put Ripple’s legal costs at $150 million over the four-year fight.
Ripple prevailed when Judge Analisa Torres ruled that XRP in itself is not a security. The two sides settled in May last year after the Trump administration installed new SEC leadership that has taken a more accommodating approach to crypto.
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Jul 10, 2026
Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch.
Why it matters:
Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch.