Caitlin Long Drops Truth Bomb: SEC Crackdown Cripples Ripple, XRP Rejected by Treasury

Ripple's regulatory nightmare just got worse—and Caitlin Long isn't mincing words.

The SEC's relentless assault has left Ripple fighting with one hand tied behind its back, while the Treasury snubs XRP for... something more bureaucratic, no doubt.

Here's why the crypto giant can't catch a break—and what it means for the rest of the market.

Regulatory purgatory: Ripple's legal limbo drags on as the SEC tightens its grip. No surprise—agencies love moving slower than Bitcoin transactions in 2017.

Treasury's cold shoulder: XRP's institutional dreams fade as the US government opts for 'safer' picks. Translation: they'll probably back a digital dollar that’s 10 years too late.

The fallout? A wake-up call for crypto projects banking on regulatory goodwill. Spoiler: Wall Street still calls the shots.

Ripple is once again at the center of controversy after financial expert Caitlin Long delivered strong criticism against the company and XRP. Known for her work in the Bitcoin space and as the founder of Custodia Bank, Long voiced concerns about Ripple’s structure and history that she says continue to limit its credibility.

Caitlin Long Questions Ripple’s Design and Trustworthiness

Long claimed that Ripple’s real issue isn’t just the lawsuit from the U.S. Securities and Exchange Commission, but something deeper. She opened up about what she called a centralized network design and flawed token model. According to her, Ripple’s early decisions about XRP distribution created long-term problems, especially when it comes to trust from large financial institutions.

She argued that the way XRP was originally released, through a full pre-mine and early fundraising, has left a lasting impression on institutions. 

Just when you think the XRP Army is done fighting…. @bgarlinghouse @ripple @s_alderoty pic.twitter.com/5dMAB51SQc

Long also commented on the long legal battle Ripple faced with the SEC. While she said it hurt the company, she said that the wider crackdown on crypto under the Biden administration affected many other projects too. 

Still, she was clear that in her view, Ripple is not a likely candidate for major government blockchain use. When asked what network the U.S. Treasury WOULD choose to tokenize assets like U.S. Treasuries, she replied that it would likely be Ethereum, or possibly Bitcoin, but not Ripple.

Experts and XRP Supporters Respond

Caitlin Long’s comments didn’t go unnoticed. Critics were quick to respond, arguing that her statements were misleading or simply wrong.

One expert said it was shocking that Long would speak so confidently about Ripple while showing what appeared to be a complete misunderstanding of the project. 

First, Ripple never held an ICO. All 100 billion XRP were created at launch, and the token had no price in the early days. This is a key difference from Ethereum, which raised funds through a public ICO and distributed ETH using Bitcoin.

She has no clue what she is talking about, but she talks with such confidence about it.

1) Ripple never did an ICO. XRP was worth nothing when the XRP Ledger started and all 100B put into the genesis account.

2) The XRP Ledger is decentralized. Either it's ignorance or lack of… https://t.co/yQNtGe81XL

Second, the XRP Ledger is open and decentralized. Anyone can run a node, validate transactions, or even fork the network if they choose. It currently has over 1,000 nodes and more than 100 validators, many of them operated by independent businesses and individuals.

Others discussed how projects like Ripple continue to face criticism despite having legal victories and building real-world products.