Ripple CEO Brad Garlinghouse used a speech at the CFTC’s Innovation Advisory Committee meeting this week to make the case for passing the Clarity Act, pointing to his company’s own multi-year legal fight with the SEC as evidence of the cost uncertain regulation imposes on the industry.
A $150 Million Legal Bill
Garlinghouse said Ripple spent $150 million on outside legal counsel during its four-year lawsuit with the SEC, a fight he said most companies could not have afforded. “Other companies were bullied into submission,” he said, referring to firms he suggested settled or shut down rather than risk a similar legal battle before Ripple’s case set precedent.
The Case for Clear Rules
Garlinghouse argued the current regulatory environment remains inadequate. “The status quo is not good enough for consumers or for innovation,” he said, calling clear rules essential both to protect users and hold companies accountable, while giving compliant businesses the confidence to operate in the United States.
Hiring Moved Offshore
To illustrate the impact of regulatory uncertainty, Garlinghouse said 80% of Ripple’s hiring during its four years of litigation was outside the United States, a pattern he said left lasting effects on the company’s footprint. London remains Ripple’s second-largest office today, which he attributed directly to that period.
A Shift Under the Current Administration
Garlinghouse said the regulatory posture has changed under the current administration, crediting leadership at both the CFTC and SEC. He argued the technology represented at the meeting has the potential to make moving money faster, more efficient and more accessible, but said that potential depends on regulatory clarity being formally established.
