Brad Garlinghouse Criticizes 60 Minutes for Omitting Key XRP Ruling in Crypto Segment
Ripple’s Involvement in Political Funding and SEC Lawsuit
The 60 Minutes report, led by journalist Margaret Brennan, delved into Ripple’s substantial financial support aimed at backing pro-crypto candidates in the U.S. elections. It also touched upon the ongoing enforcement action by the U.S. Securities and Exchange Commission (SEC) against Ripple concerning the XRP token. Garlinghouse highlighted during the segment that the SEC accused Ripple and its XRP sales of representing “the sale of an unregistered security.”
However, Garlinghouse took to social media platform X to point out that the news piece omitted a significant July ruling by a federal judge. This ruling stated that XRP was not a security concerning programmatic sales on digital asset exchanges. This omission drew criticism from Garlinghouse, who felt that the segment gave a misleading impression of the legal challenges facing XRP.
Controversial Views and Legal Developments
The 60 Minutes segment also featured former SEC official John Reed Stark, who argued that judicial decisions have consistently classified similar tokens as securities, implying this should apply to XRP as well. Garlinghouse responded to these claims on X, stating, “[Stark] knows better despite his comments that 60 Minutes chose to air.”
Since the SEC filed its lawsuit against Ripple in December 2020, there have been significant developments. In August, a judge imposed a $125 million civil penalty on the company. Both the SEC and Ripple have since filed appeals, indicating that the legal battle is far from over.
The Ongoing Debate Over Cryptocurrency Regulation
The classification of digital tokens like XRP as securities remains a contentious issue within the cryptocurrency community. This debate has intensified criticisms of U.S. lawmakers and regulators, particularly under the leadership of SEC Chair Gary Gensler. Garlinghouse suggested on 60 Minutes that initiatives like Fairshake might not have been necessary if there had been a more accommodating regulatory approach to digital assets.
Following the August court ruling, XRP saw a brief resurgence, reclaiming its position as the third-largest token by market capitalization. This resurgence has been accompanied by increased interest from asset managers seeking to launch exchange-traded products based on XRP, highlighting the evolving landscape of cryptocurrency investment despite regulatory challenges.
For more insights into how the legal landscape is shaping the future of cryptocurrency, consider reading about the ongoing battle between the SEC and the crypto industry’s legal teams.
As the Ripple case continues to unfold, it serves as a pivotal example of the broader implications of cryptocurrency regulation and its impact on market dynamics and political advocacy within the blockchain space.
