Ripple Labs CEO Brad Garlinghouse has launched a scathing critique of US Securities and Exchange Commission (SEC) Chair Gary Gensler, as he looks to regain the confidence of Korean investors following Ripple’s protracted legal battle with the regulator. Garlinghouse’s comments came during a press conference in Seoul, where he reflected on Ripple’s recent victory in its four-year legal conflict with the SEC.Ripple, a San Francisco-based blockchain company, had been embroiled in a lawsuit with the SEC since 2020, after the regulator accused Ripple of raising funds through the sale of its cryptocurrency, XRP, without registering it as a security. However, on August 7, a US court ruled in favor of Ripple, declaring XRP a currency rather than a security, and slashed the penalty from $2 billion to $12 million.“In the summary judgment, the judge declared that XRP is not a security,” Garlinghouse emphasized during the press conference. “It is the only digital asset besides Bitcoin and perhaps Ethereum to have that regulatory clarity in the US.”Garlinghouse expressed doubt about Gensler’s continued tenure at the SEC, stating, “I’ll make a gentleman’s bet that won’t happen,” alluding to the uncertainty surrounding Gensler’s future, regardless of the upcoming US presidential election.The CEO described the court’s ruling as a monumental win for the broader cryptocurrency industry. “Regardless of whether the SEC chooses to appeal, we do not see any credible path for them to challenge the court ruling that XRP is not a security,” he said.Garlinghouse also touched on the evolving US crypto policy landscape, predicting a more bipartisan approach to technology in the future. “Technology should be bipartisan,” he remarked. “I think we will see it become more so as the election continues.” He observed that while Republicans have recently shown more support for cryptocurrency, leading Democrats recognize its importance for maintaining US technological leadership.The Seoul press event also featured several key Ripple executives, including President Monica Long, Chief Technology Officer David Schwartz, and Senior Vice President of Strategic Initiatives Eric van Miltenburg.XRP, the world’s seventh-largest cryptocurrency by market value, has seen a surge in trading activity in South Korea. Following Garlinghouse’s July 17 comments about an impending resolution to the SEC dispute, XRP temporarily surpassed Bitcoin in trading volume on Upbit, Korea’s largest crypto exchange, accounting for 40% of all transactions—a remarkable spike not mirrored elsewhere. On Tuesday, XRP remained the third most traded cryptocurrency on Upbit, with a 6.5% market share.Garlinghouse’s visit to Seoul highlights Ripple’s ongoing efforts to fortify global investor confidence, with a particular focus on Asia. “The majority of all XRP held on exchanges worldwide is in Korea and Japan,” Garlinghouse noted, underlining the strategic importance of the region. He also announced Ripple’s partnership with Korea’s Yonsei University, making it the 58th member of Ripple’s University Blockchain Research Initiatives program and the 12th from the Asia-Pacific region. This initiative aims to advance blockchain research and follows the launch of a fund in June to promote XRPL technology development in Korea and Japan.Ripple is also expanding its focus on the rapidly growing crypto custody market, which is projected to surpass $10 trillion by 2030, with 10% of the world’s gross domestic product expected to be tokenized by then. President Monica Long highlighted the importance of this market, stating, “Most of this adoption will be driven by institutional players who will need a place to store these crypto assets.” She identified Korean institutions as potential partners, noting the involvement of major banks like Hana Bank and Shinhan Bank in the crypto custody space.However, Long pointed out that regulatory advancements in Korea are crucial for fully realizing these opportunities. “Current regulations do not allow banks to make payments using blockchain, but Korea’s Financial Services Commission is considering new guidelines to provide clarity,” she said. “We look forward to engaging with more banks then.” The FSC is expected to finalize amendments defining digital assets as security tokens by the first half of 2025.
