Ripple’s $150 Million Legal Battle with SEC Under Scrutiny on 60 Minutes

Ripple’s ongoing $150 million legal battle with the U.S. Securities and Exchange Commission (SEC) gained significant attention during a recent 60 Minutes segment on CBS News. The segment explored Ripple’s legal challenges and the broader growing influence of the crypto industry in politics.

However, CEO Brad Garlinghouse and members of the Ripple community expressed dissatisfaction with the way the story was presented.

Following the broadcast, Garlinghouse took to X (formerly Twitter) to voice his concerns. He pointed out that despite the 90-minute interview, a crucial legal development was left out: in July, a federal judge ruled that XRP is not a security when sold on public exchanges. This ruling directly contradicted the claims made by John Reed Stark, former head of SEC enforcement, who argued during the segment that XRP should still be classified as a security.

Garlinghouse criticized 60 Minutes for omitting this key development, which could have provided viewers with a more balanced perspective on Ripple’s legal case. He also expressed frustration with Stark’s dismissive attitude towards crypto, comparing it to the early skepticism faced by the internet. The Ripple CEO emphasized that Ripple’s network is already facilitating billions of dollars in cross-border transactions for institutional clients, all while adhering to strict know-your-customer (KYC) regulations. Garlinghouse stressed that these real-world applications showcase the transformative potential of blockchain technology—a point the segment largely overlooked.

Other members of the crypto community echoed Garlinghouse’s sentiments. Entrepreneur Monika Baechler-Dombay raised questions about the motivations behind 60 Minutes' editorial decisions, suggesting that the omission of favorable information about Ripple and XRP reflected a biased narrative. She criticized the show for selectively leaving out details that did not fit its storyline.

An investor, identified as Red, also pointed out that the July ruling declaring XRP not a security remains unchallenged and should have been a central focus of the segment. Crypto enthusiast Jon voiced strong disapproval of the broadcast, accusing 60 Minutes of misrepresenting the crypto industry and unfairly targeting Ripple’s CEO. Jon condemned the program for insinuating that cryptocurrency had manipulated elections, coerced lawmakers, and contributed to illicit activities like human trafficking.

Despite the controversy surrounding the segment, the 60 Minutes episode did highlight the increasing integration of the crypto industry into U.S. politics and society. Ripple’s involvement, along with contributions from other crypto companies, has played a role in influencing elections and legislative initiatives. For example, the bipartisan FIT21 bill, which aims to create a clearer regulatory framework for crypto, is a significant step in addressing the regulatory challenges companies like Ripple face.

However, the episode also underscored the stark divide in perspectives on cryptocurrency. While Garlinghouse and others highlight crypto’s potential to revolutionize industries, figures like Stark continue to view crypto as a speculative asset, laden with risks and potential misuse in illegal activities. The debate surrounding the regulation and future of crypto is far from over, and the impact of this legal battle on Ripple’s future remains uncertain.