Ripple CEO Brad Garlinghouse recently expressed surprise that the crypto market has not rewarded XRP for its distinct regulatory clarity. During an interview at the XRP Ledger Apex conference, Garlinghouse emphasized XRP’s unique status in the U.S. market as the only cryptocurrency with definitive regulatory clarity.
Garlinghouse compared XRP’s situation to that of Ethereum (ETH), noting that XRP is definitively not a security, unlike ETH, whose status remains uncertain. The U.S. SEC has issued pre-warnings to Ethereum’s founders about a potential lawsuit. In March, reports indicated that the SEC sought to classify ETH as a security by requesting financial documents related to the Ethereum Foundation’s activities with U.S. firms. This move sparked widespread criticism from the crypto community.
Related article: Ripple CEO Updates on SEC Lawsuit Verdict Timeline
Market’s Unexpected Response
Garlinghouse highlighted XRP’s clear regulatory advantage, especially following District Judge Analisa Torres’s ruling on July 13, 2023, which confirmed XRP is not a security. Despite this, he found it strange that the market has not reflected this advantage in XRP’s value. He stated, “I think it’s strange that XRP is in such a unique position, and the market hasn’t kind of rewarded that.” Ripple community figure “XRP DROPZ” also drew attention to Garlinghouse’s remarks.
Garlinghouse’s comments come amid XRP’s current underperformance in the crypto market. XRP trades at $0.478, showing a flattened cumulative one-year gain. Following the July 2023 court ruling, XRP surged over 100% within 24 hours, peaking at $0.93. However, its subsequent decline puzzled many.
Contrasting Trends In The Crypto Market
Despite XRP’s clear regulatory status and relisting on major U.S. exchanges like Coinbase, Gemini, CryptoCom, and Kraken, as well as its reinstatement in Grayscale’s investment products, XRP is down about 50% from its July high. Meanwhile, the broader crypto market entered a bull run, with Bitcoin, BNB, Floki, and Injective (INJ) breaking their 2021 all-time highs.
Related article: Ripple CEO’s $10 XRP Countdown: 2025 ETF Approval to Ignite Crypto Payday?
Yet, XRP declined instead of following this bullish trend. An investigation earlier this year revealed XRP’s price stagnation is due to lack of demand, not routine sales, as speculated.
This lack of demand has contributed to XRP’s underperformance despite its regulatory clarity and potential market advantages.
