Ripple once weighed shutting down and handing XRP to shareholders, CEO says

Markets Ripple once weighed shutting down and handing XRP to shareholders, CEO says Ripple's Brad Garlinghouse says he and co-founder Chris Larsen considered winding the company down and handing its XRP to shareholders before deciding to fight the 2020 lawsuit. By Shaurya Malwa Jul 12, 2026, 6:09 a.m. 2 min read Make preferred on Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Make preferred on Summary Show Ripple Chief Executive Brad Garlinghouse said he and co-founder Chris Larsen seriously considered shutting the company down and distributing its XRP to shareholders after the SEC sued in 2020. Garlinghouse said they chose to fight the SEC rather than close, a decision he said preserved hundreds of jobs but cost Ripple about $150 million in legal fees over four years. Ripple ultimately prevailed when a federal judge ruled XRP itself is not a security, and the case was settled last year after a change in SEC leadership that has taken a more accommodating stance toward crypto. Ripple came close to shutting down rather than fighting the U.S. Securities and Exchange Commission, Chief Executive Brad Garlinghouse said, describing a decision he and co-founder Chris Larsen faced after the agency sued the company in 2020. Speaking at the University of Kansas School of Business earlier this week , Garlinghouse said the two seriously considered winding Ripple down and distributing its XRP holdings to shareholders. He described that as the easier path, against a government he said had "infinite power and resources." Ripple holds a large amount of XRP, and Garlinghouse said the company could have handed it to shareholders on a pro rata basis and dissolved, effectively ending the case by ending the company. But they chose to fight because shutting down would have cost hundreds of jobs. "I'm glad in retrospect, but that was not obvious at the time," he said. The SEC sued Ripple in 2020, alleging it had sold XRP as an unregistered security, and named Garlinghouse and Larsen personally. Garlinghouse said he met agency officials four times between 2017 and 2019 without a lawyer and was never told XRP might be treated as a security, which shaped his view that the company had been denied clear rules. He put Ripple's legal costs at $150 million over the four-year fight. Ripple prevailed when Judge Analisa Torres ruled that XRP in itself is not a security. The two sides settled in May last year after the Trump administration installed new SEC leadership that has taken a more accommodating approach to crypto. Latest Crypto News 1 Bitcoin, ether little changed as U.S. launches fresh Iran strikes 1 hour ago 2 Bitcoin’s BIP 110 fork deadline nears with miner support at zero 2 hours ago 3 Lending protocol Bonzo loses 77% of value locked as $9 million oracle exploit rattles Hedera 13 hours ago 4 Crypto IPO market stalls as capital rotates to AI and macro uncertainty weighs 14 hours ago 5 The UK has finally shown it’s serious about crypto 17 hours ago 6 Bitcoin treasury company Empery Digital sold about half of its BTC stack 19 hours ago 7 AI found an Ethereum bug that could take validators offline, but humans had to prove it 20 hours ago 8 Bitcoin analysts predict $300,000–$500,000 price in 2029. The math says no Jul 11, 2026 9 Meta's Chief Data Officer Says Agentic Commerce is the "Next Tier of Business" Jul 10, 2026 10 U.S. government digital dollar set to be banned tonight under housing law's CBDC limit Jul 10, 2026 Latest Research Digital Assets: Quarterly Review and Outlook Q2 Digital Assets: Quarterly Review and Outlook Q2 Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch. By CoinDesk Research Jul 10, 2026 Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch. Why it matters: Digital assets posted a third consecutive quarter of losses in Q2 2026, the longest losing streak since the 2022 bear market, as institutional capital rotated into AI equities and Bitcoin ETFs recorded their largest quarterly outflow since launch. Our report examines what drove the divergence, where structural adoption continued regardless, and what Q3 signals to watch. View Full Report More From Markets Bitcoin, ether little changed as U.S. launches fresh Iran strikes Bitcoin treasury company Empery Digital sold about half of its BTC stack Bit