Ripple CEO Slams 60 Minutes for Omitting Key Information on XRP Ruling

Brad Garlinghouse, the CEO of Ripple Labs, has criticized 60 Minutes for leaving out critical details in its December 8 segment about the role of cryptocurrencies in the 2024 U.S. elections. Specifically, Garlinghouse called out the news program for failing to mention a key federal court ruling that found XRP was not a security in certain circumstances, a significant development in the ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC).

The 60 Minutes Segment

The 60 Minutes segment, which aired on December 8, focused on Ripple’s involvement in funding the political action committee (PAC) Fairshake, which has been backing pro-crypto candidates in the U.S. elections. The piece also discussed Ripple’s ongoing legal dispute with the SEC over the classification of its digital asset, XRP. The SEC has alleged that Ripple’s sale of XRP constitutes the sale of an unregistered security, a claim that has been central to the case since the SEC filed its lawsuit against Ripple in December 2020.

Garlinghouse appeared in the segment, where he highlighted the SEC's assertion that Ripple’s sales of XRP were unlawful. However, he was quick to point out on social media that 60 Minutes had not included the crucial fact that a federal judge ruled in July 2023 that XRP is not a security in specific cases, particularly in relation to programmatic sales of the token on digital asset exchanges.

Garlinghouse’s Criticism

In a post on X (formerly Twitter), Garlinghouse expressed his frustration, writing that the omission of the judge’s ruling was “shockingly left out” of the segment. He emphasized that the legal victory for Ripple was a significant development that could have provided important context for the ongoing debate over whether certain cryptocurrencies are securities under U.S. law.

The 60 Minutes report featured counterarguments from former SEC official John Reed Stark, who insisted that “judges have said over and over again that these are securities.” Stark's comments suggested that the court's ruling on XRP did not invalidate the broader argument that many digital assets should be classified as securities.

However, Garlinghouse’s point is that the ruling specifically addressed the sales of XRP on exchanges, which was a key part of the ongoing case. The distinction between the programmatic sales and other types of XRP sales has been at the heart of Ripple’s defense, with the company arguing that its transactions did not meet the criteria of a security.

The SEC Lawsuit Against Ripple

The SEC's lawsuit against Ripple has been one of the most high-profile legal battles in the crypto space. The SEC alleges that Ripple's sale of XRP violated securities laws, but the case has taken unexpected turns. In August 2023, a judge ruled that Ripple was liable for a $125 million civil penalty. However, the court also ruled that XRP was not a security when sold on digital asset exchanges, a critical decision in the case.

The SEC has since appealed the ruling, and Ripple filed a cross-appeal. As of now, the civil case remains ongoing, with the final outcome still up in the air. Despite the legal challenges, Ripple has continued to thrive, and XRP briefly regained its position as the third-largest cryptocurrency by market capitalization following the judge’s ruling.

The Broader Impact of the Ruling

The ongoing legal battle and the court’s rulings on XRP’s classification have broader implications for the crypto industry. The question of whether certain tokens qualify as securities under U.S. regulations has been a major point of contention, with many in the industry criticizing the SEC’s approach to digital assets under the leadership of Chairman Gary Gensler.

Garlinghouse himself pointed out during the 60 Minutes interview that if the SEC had taken a more accommodating stance on cryptocurrencies, organizations like Fairshake—Ripple’s PAC supporting pro-crypto candidates—may not have existed. The regulatory uncertainty surrounding digital assets in the U.S. has been a major issue for the industry, and Garlinghouse’s comments reflect the frustration felt by many crypto advocates who believe that clearer guidelines could have facilitated innovation without the need for costly legal battles.

XRP's Path Forward

Despite the ongoing legal challenges, XRP appears to be on a positive trajectory. Following the August ruling, XRP briefly reclaimed its spot as the third-largest cryptocurrency by market cap, signaling renewed investor confidence. Additionally, some asset managers have begun applying to the SEC to launch exchange-traded products (ETPs) tied to XRP, further suggesting that the legal landscape for the token may be improving.

As the case against Ripple continues, the crypto industry will be closely watching the outcome. The decision will likely have significant ramifications for how digital assets are treated under U.S. law and could set a precedent for other blockchain companies facing similar challenges.

Conclusion

Brad Garlinghouse’s criticism of 60 Minutes highlights a key issue in the ongoing Ripple-SEC saga: the importance of ensuring that media coverage accurately reflects the evolving legal landscape for digital assets. While the 60 Minutes segment focused on Ripple’s PAC funding and the SEC’s enforcement action, the omission of the judge's ruling on XRP’s classification as a security leaves out an important part of the story.

As the legal battle continues, Ripple remains steadfast in its position that XRP is not a security. The outcome of the case, along with the ongoing debate over the classification of digital assets, will likely shape the future of blockchain and cryptocurrency regulation in the U.S.