XRP at a Crossroads: Ripple CEO Reveals Make-or-Break Court Moment

Ripple's legal saga takes a dramatic turn as CEO Brad Garlinghouse points to a pivotal courtroom showdown that could redefine XRP's future.

The stakes? Only the entire regulatory framework for crypto in the US—no pressure.

While Wall Street hedgies play wait-and-see, retail traders are left deciphering legal jargon like it's some perverse SAT test. Because nothing says 'decentralized finance' like hanging on every word from a judge's gavel.

One thing's clear: when this verdict drops, the only thing moving faster than price action will be the army of Twitter lawyers ready to explain why they 'totally called it.'

TLDR

• Ripple CEO Brad Garlinghouse addressed the legal classification of XRP in a recent video interview.
• He emphasized that Judge Torres ruled XRP is not a security in itself.
• Garlinghouse explained that XRP can still be part of a security if sold through an investment contract.
• The July 2023 ruling brought clarity for retail XRP sales but left institutional sales under scrutiny.
• Judge Torres reduced the SEC’s penalty demand from $2 billion to $125 million in August 2024.

Ripple CEO Brad Garlinghouse addressed the latest updates in Ripple’s ongoing legal battle with the U.S. Securities and Exchange Commission. He highlighted the significance of the court rulings surrounding XRP’s classification and regulatory future. His statements reaffirmed Ripple’s stance and offered insights into the wider implications for digital asset regulation.

Judge Torres’ decisions continue to shape the legal environment for XRP and other cryptocurrencies. Although the ruling offered partial clarity, unresolved issues remain. Ripple CEO emphasized Ripple’s position on driving regulatory clarity through engagement with policymakers and legal channels.

The company maintains its public advocacy while legal proceedings with the SEC progress through court rulings and denied settlement motions. Ripple CEO acknowledged the long-term significance of these proceedings for the entire crypto industry. His remarks signaled Ripple’s determination to secure clear, defined legal standards for digital assets.

Ripple CEO Defends XRP Transaction Structure

Ripple CEO explained the primary issue in the SEC case involved XRP’s legal classification as a security. The July 2023 ruling by Judge Torres declared that XRP itself is not a security. However, institutional sales of XRP through formal contracts were deemed to fall under securities regulations.

Brad Garlinghouse Drops XRP Bombshell 💣 #XRP pic.twitter.com/xAGIw4pbId

— Levi | Crypto Crusaders (@LeviRietveld) July 12, 2025

This distinction offered confidence to retail markets while institutional clarity remained under judicial review. The ruling marked a pivotal moment in Ripple’s legal defense. The CEO emphasized that the FORM of the transaction, not the asset, determines its legal nature under securities law.

He further added that XRP’s utility within Ripple’s payment systems remains unaffected by the case’s ongoing legal questions. As a result, Ripple continues to use XRP for its products and services. The company views the ruling as a legal milestone in shaping crypto policy.

SEC Penalty Reduction and Settlement Denial

Ripple CEO also discussed the financial implications of the SEC’s reduced penalty request. In August 2024, Judge Torres reduced the SEC’s demand from $2 billion to $125 million. This development brought temporary relief but did not conclude the legal matter.

Both Ripple and the SEC filed motions in early 2025 seeking to dismiss their appeals and finalize a settlement. Judge Torres denied the request, leaving the case unresolved and extending its impact on regulatory clarity. Ripple CEO noted that the legal path remains open as both sides await final resolution.

Despite the delay, Ripple CEO reaffirmed the company’s strategy to cooperate with regulators and advance responsible crypto oversight. He stated that Ripple WOULD continue lobbying for consistent and transparent legal definitions and remains active in policy discussions surrounding digital asset regulation.