Ripple (XRP) CEO Calls Out John Reed Stark Over Misinformation on Crypto

Ripple (XRP) CEO Brad Garlinghouse recently appeared on CBS’s “60 Minutes” to discuss the future of cryptocurrencies, including Ripple’s ongoing legal battles with the U.S. Securities and Exchange Commission (SEC).

The segment featured an intense debate between Garlinghouse and former SEC official John Reed Stark, a vocal crypto critic. Garlinghouse strongly disagreed with Stark’s views on crypto’s utility and the classification of XRP, leading to a heated exchange on-air and social media.

Garlinghouse and Stark Clash Over Ripple’s Role

Brad Garlinghouse highlighted how institutions are seeing a growing adoption of cryptocurrency and XRP. Digital currencies are facing skepticism, which is similar to when the Internet emerged, and many believed it would not succeed.

The Ripple CEO pointed to major financial institutions, such as JPMorgan, now relying on blockchain technology and cryptocurrencies such as XRP for cross-border transfers. He added that we are now at the point where widespread use proves real-world utility for digital assets.

In contrast, John Reed Stark has labeled cryptocurrencies as speculative assets without real value. According to Stark, Crypto is a ‘scourge’ and a ‘systemic risk’. In Starks view, the only utility offered by digital currencies like XRP is subject to manipulation.

Stark also repeated his long-held position that XRP is a security, an assertion at the center of Ripple’s ongoing legal battle with the SEC.

But Garlinghouse countered Stark’s assertions, saying cryptocurrencies’ utility is undeniable because they are part and parcel of today’s financial systems. The coin’s utility and growing institutional acceptance were emphasized.

Another emphatic point was that XRP is already used to move billions of dollars globally. The ban is about speculation, says the debate, but for Garlinghouse, it’s about technological evolution and how it is transforming financial markets.

Stark Rejects Ruling in Ripple (XRP) Legal Battle

The most contentious point of the discussion was the classification of XRP as a security. Following the SEC’s position, Stark reflected that past legal rulings on XRP make the currency a security.

According to him, several court decisions support the argument that XRP should come under the purview of securities law. This view aligns with the SEC’s standing position, which attempts to push Ripple’s XRP sales as securities transactions.

But Garlinghouse pushed back, pointing to a ruling in favor of Ripple. In 2023, U.S. District Judge Analisa Torres found that the institutional sales of XRP violated securities laws but found that sales made to public investors or retail were not securities transactions. For Ripple, this decision partially invalidates the SEC’s broader claims against the company as Garlinghouse pointed out during his “60 Minutes” segment, the program left out this ruling.

But Stark stuck to his position, and a court ruling didn’t faze him. He argued that XRP is inherently a security, and the courts will eventually agree with the SEC. The dispute about having XRP classified as a security is still ongoing, and this is the biggest deal in terms of crypto regulation.

XRP Hits Six-Year High Amid Market Surge

Although regulatory battles continue, XRP has been smashing them in terms of value. It recently climbed to a six-year high of $2.85 and briefly overtook Tether (USDT) to become the market’s third-largest cryptocurrency.

Several events have propelled the rally, including a rising sentiment that a new US presidential administration could encourage a more favorable regulatory environment.

Moreover, relisting XRP on significant exchange platforms such as Robinhood, which garnered more retail investor access to the token, has helped push this coin’s growth.

However, increased trading volume from South Korean investors and Coinbase whales have also furthered the rally. Growing institutional interest could also drive up the price of XRP. Analysts have speculated that XRP could further rise if ETFs based on its token are approved.