LATEST: ️ Ripple CEO Brad Garlinghouse says the company nearly shut down and considered distributing its XRP holdings to shareholders after the SEC sued it in 2020.

What happened

Ripple CEO Brad Garlinghouse said the company almost shut down and at one point thought about giving its XRP holdings directly to shareholders after the U.S. SEC filed a lawsuit against Ripple in 2020.

Confirmed

Global impact / market context

If Ripple had handed out XRP, the sudden increase in tokens available for sale could have moved the price sharply, forcing the firm to seek other funding and affecting investor confidence and cash availability (liquidity, which is how easily an asset can be turned into cash).

Analyst inference

The SEC lawsuit reflects ongoing regulatory scrutiny of crypto assets in the United States, creating uncertainty for firms that hold large token reserves and shaping how investors assess risk in the broader digital‑currency market.

Analyst inference

What to watch

1. Whether Ripple files a formal plan to distribute XRP or sell part of its holdings, which would directly affect token supply and market price. Analyst inference
2. Any settlement or further legal action by the SEC, as a resolution could lift regulatory pressure and improve Ripple’s ability to raise capital. Analyst inference
3. Changes in Ripple’s cash flow or financing strategy, such as new partnerships or debt issuance, that would indicate how the company is coping with the lawsuit’s financial strain. Analyst inference

Affected assets

• XRP — XRP

Evidence

• x.com