Ripple almost shut down in 2020, now XRP on college jersey

Ripple’s CEO Brad Garlinghouse disclosed that the company seriously weighed dissolving and distributing its entire XRP holdings to shareholders after the SEC’s December 2020 lawsuit—a move that would have erased the token from the market [1]. The revelation comes as XRP becomes the first cryptocurrency featured on a major U.S. college basketball jersey, underscoring how far the asset has traveled from the brink of extinction.

Legal crisis and near‑shutdown

The SEC’s complaint triggered immediate delistings on U.S. exchanges and a price collapse, prompting internal talks of winding down Ripple and gifting its XRP stash to equity holders as a way to leave the regulator with “nothing left to sue over” [1][3]. Lawyers warned that the company was “done and unsavable,” and the SEC’s focus on Garlinghouse and co‑founder Chris Larsen added personal pressure [1]. Ultimately, the decision to stay afloat was driven by the need to preserve hundreds of jobs and maintain the separation between XRP as a digital asset and Ripple’s corporate equity [2][3].

Outcomes and market rebound

Ripple spent about $150 million defending the case, a figure Garlinghouse confirmed during his Kansas talk [3]. In July 2023, Judge Analisa Torres ruled that XRP transactions themselves were not securities, sparking a short‑term price surge of up to 96 % before settling lower [1]. By 2025 the SEC dropped its appeal, and Ripple paid $50 million of the $125 million penalty the court had initially ordered [1]. The legal clarity helped institutions re‑enter the market, and XRP’s visibility rose further when the Kansas Jayhawks signed a five‑year deal to display an XRP patch on their jerseys—the first such corporate logo in Division I sports [1].

What to watch

• SEC and Fed actions – Any new rulings or a Federal Reserve master‑account decision could shift XRP’s utility and Ripple’s banking strategy.
• XRP price levels – Watch the $0.50 support zone and the $0.80 resistance, which have framed recent trading ranges since the 2023 ruling.
• Token unlocks – Monitor the scheduled release of Ripple‑controlled XRP (approximately 55 % of total supply) for potential supply‑side pressure.

The disclosure shows that Ripple’s survival hinged on a strategic choice to keep the company alive despite existential legal threats, and the subsequent jersey partnership illustrates how the token’s reputation has been rehabilitated. Whether XRP can sustain broader institutional adoption now depends on further regulatory clarity and the company’s ability to embed itself in the U.S. financial infrastructure.