Brad Garlinghouse, CEO of Ripple, revealed that during the early stages of the legal battle with the U.S. Securities and Exchange Commission (SEC), he seriously considered completely halting operations and shutting down the company.

According to overseas cryptocurrency media outlet CoinGape, CEO Garlinghouse recently attended an event at the University of Kansas (KU) School of Business and reflected on the crisis that unfolded immediately after the SEC filed a lawsuit against Ripple in 2020 (local time).

He confessed that deciding whether to fight the lawsuit was "never an easy decision" because the federal government possessed "limitless authority and resources." He explained that giving up the fight and closing the company could have been an easier option.

In fact, Ripple had envisioned specific scenarios in the event of a shutdown. If the company had closed its doors, one plan considered was distributing Ripple's held XRP to shareholders according to their equity stakes, while officially notifying the SEC that, as it argued, 'XRP will be treated as a security, and Ripple will no longer hold the token.'

However, CEO Garlinghouse added that such a choice would have driven hundreds of employees out onto the streets, and that the decision to hold on and keep the company running was truly a blessing in disguise.

Key Issues and Outcome of the SEC Lawsuit

According to CoinGape, the SEC sued Ripple in 2020 (local time) over the sale of XRP, and CEO Garlinghouse and co-founder Chris Larsen were also sued together on charges of 'selling unregistered securities in the form of XRP.'

The fierce legal battle between the two sides finally concluded the lengthy lawsuit only last year (local time), following the inauguration of the Donald Trump administration.

During the trial, Judge Analisa Torres made a key ruling that 'XRP itself is not a security.' CoinGape added that Judge Torres recently ruled in the Kalshi case, currently underway against the State of New York, that New York's gambling-related laws apply to sports-related event contracts.

Normalization of Business and Expanding Global Institutional Adoption

'BankXRP,' a prominent member of the XRP community, reflected on the arduous journey Ripple and XRP have overcome, evaluating that Ripple's business in the United States is now fully normalized and has secured business licenses in numerous regions globally.

In particular, Ripple recently obtained a new business license in the European Union (EU), meeting the strict standards of MiCA, the comprehensive cryptocurrency regulation.

BankXRP assessed that Ripple is expanding partnerships with major financial institutions worldwide. Furthermore, it claimed that banks have moved beyond merely discussing the adoption of XRPL (XRP Ledger) and are actually building payment systems based on it.

He emphasized the significance, stating, "A project that countless people in 2020 (local time) confidently declared was over has now risen to stand at the center of institutional adoption." He added, "Bear markets and lawsuits do not break investors' conviction; they simply separate those who truly understood the investment thesis from the beginning."

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