SEC Abandons Appeal Against Ripple! CEO Garlinghouse Optimistic About Upcoming IPO in the U.S., While Bitwise and Franklin Compete to File for XRP ETF

Brad Garlinghouse, CEO of Ripple, on March 20th, stated in an interview that the U.S. Securities and Exchange Commission (SEC) has officially dropped the personal lawsuit against him, which brings positive effects to the crypto industry. He also revealed that he is considering reclaiming the $125 million in litigation costs and does not rule out launching an IPO in the future, as well as expanding mergers and acquisitions in blockchain companies. Furthermore, Garlinghouse pointed out that there are currently 11 XRP spot ETFs under review, with approval expected as early as the second half of 2025. Their stablecoin, RLUSD, is also expected to rank among the top five global stablecoins by the end of the year.

SEC Drops Appeal Against Ripple, CEO Considers Reclaiming $125 Million Litigation Costs

Ripple was accused by the SEC in December 2020 of selling XRP as an unregistered security. In the summer of 2023, the court ruled that XRP itself did not constitute a security, granting Ripple a victory on this critical point. Recently, with Trump returning to power and regulatory trends becoming more lenient, the SEC began withdrawing several lawsuits against crypto firms, benefiting Ripple.

Although Ripple won the lawsuit, they were still required to pay a $125 million fine for selling some XRP to institutional investors in its early sales, which has since been placed in an escrow account. Garlinghouse stated that this fine was purely a result of former SEC Chair Gary Gensler’s power struggles. “Now, we have the option to decide whether we will continue to pursue this fine. However, if new leadership takes over at the SEC, they may opt for a settlement and no longer pursue this,” he said.

Rising Demand for XRP ETFs, Approval Likely in Second Half of 2025

Garlinghouse mentioned that there are currently over 11 XRP ETF applications under review by the SEC, with mainstream asset management companies such as Bitwise and Franklin Templeton among those applying for XRP ETFs. He expects these ETFs to be approved as early as the second half of 2025.

XRP May Be Included in U.S. Strategic Crypto Reserves

Garlinghouse also revealed that Trump had mentioned the U.S. government’s plan to establish a Bitcoin strategic reserve and “other crypto asset reserves,” which could include XRP. He speculated, “These reserves may come from crypto assets seized by the government, including XRP.” Although the executive order details have not been fully disclosed, he expects the Treasury Department to clarify these details gradually.

Ripple Considers IPO, but Focuses More on Global Mergers and Acquisitions

When asked whether Ripple would go public in the U.S., Garlinghouse stated that an IPO is not ruled out in the future, but it is not the current priority. The focus is on seeking merger and acquisition opportunities. He emphasized that now is a good time for expansion as the U.S. market has been unlocked. Ripple’s future acquisition targets will focus on blockchain companies related to financial services and payment infrastructure.

RLUSD Stablecoin Exceeds Q1 Expectations, Targeting Top 5 by Year-End

Ripple launched its own stablecoin RLUSD at the end of last year. Garlinghouse stated that RLUSD is expected to rank among the top five global stablecoins by the end of 2025. He added that the total market cap of stablecoins is approximately $230 billion, with the potential to grow tenfold in the next five years. Ripple will actively cooperate with global exchanges and financial institutions to expand RLUSD’s application scenarios.

U.S. Financial Sector’s Shift in Attitude, Restarting Crypto Business Layout

Garlinghouse emphasized that the U.S. financial sector’s attitude toward crypto assets has significantly changed. In the past, many banks avoided crypto due to concerns about regulatory risks, but now many banks are actively discussing two major application scenarios: digital asset custody and cross-border payments. He provided an example that currently, bank transfers take several days, which is unreasonable, and crypto payments will be key to upgrading the financial system.

Regulatory Attitude Shift, Two Major Bills Moving Forward in Congress

Regarding regulation, Garlinghouse believes that Congress is moving forward in two major directions:

• Stablecoin Bill: Officially entering the legislative process.
• Crypto Market Structure Bill FIT21: Expected to be voted on before the summer recess in Congress this year.

XRP Market Supply Mechanism Transparent, Future Issuance May Be More Conservative

Regarding the issuance and supply mechanism of XRP, Garlinghouse emphasized that Ripple does not release XRP arbitrarily and reiterated:

• The total supply of XRP is capped at 100 billion, with no possibility of increase.
• Ripple currently holds about 42% of XRP and publishes the “XRP Market Report” quarterly to disclose the release volume.
• In the future, they may reduce the selling volume to align with market expectations.

(Ripple XRP Ledger Targets Institutional DeFi Applications, New Plan to Capture Trillions of Dollars Market for RWAs)

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