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Ripple CEO Brad Garlinghouse says the firm once considered winding down and distributing its XRP holdings, a move that would have ended the SEC case but cost
Ripple’s chief executive Brad Garlinghouse told a Kansas business school audience that he and co‑founder Chris Larsen seriously weighed dissolving Ripple and handing its XRP to shareholders after the SEC sued in 2020, before opting to fight the case [1].
| At a glance | |
|---|---|
| XRP price | $1.06 |
| 24h change | –3.05 % |
| Key level | $1.00 (near 52‑week low) |
| Catalyst | Disclosure of past shutdown plan & $150 M legal cost |
Garlinghouse said the alternative to litigation would have been to liquidate Ripple’s XRP holdings on a pro‑rata basis, effectively ending the lawsuit by ending the company. He noted that the “easier path” would have saved hundreds of jobs but would have required a complete shutdown. Instead, Ripple chose to contest the SEC’s claim that XRP was an unregistered security, a fight that ultimately cost the firm about $150 million in legal fees over four years [1].
A federal judge later ruled that XRP itself is not a security, and the parties settled in May of the previous year after a change in SEC leadership [1]. Despite the legal victory and the classification of XRP as a digital commodity, the token remains near its 52‑week low, trading at $1.06 and down 3.05 % on the day of the interview. The price sits just above the $1.00 threshold that marks the weakest level since late 2024, highlighting a disconnect between Ripple’s operational successes and XRP’s market performance [1].
The revelation underscores how close Ripple came to abandoning its core asset, a decision that would have reshaped the crypto landscape and eliminated the need for further litigation. Whether the company’s continued fight will eventually translate into stronger price support for XRP remains an open question.
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AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 13, 2026 · How we report
CEO Brad Garlinghouse said the company weighed dissolving after the SEC lawsuit because distributing XRP pro rata would have ended the case, but they chose to continue operating to preserve jobs.
A federal judge ruled that XRP itself is not a security, and the parties settled the case in May 2023.
Improved legal certainty has increased confidence among banks, investors, and institutions, according to Analytics Insight.
Key risks include market volatility, competition from stablecoins and other blockchain projects, and the impact of Ripple's large escrowed XRP supply.
XRP is designed to enable fast, low‑cost international payments for banks and financial companies.