In a stunning revelation at the XRP Sydney 2026 event, Ripple CEO Brad Garlinghouse claimed that former U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler privately apologized to him for the regulator's lawsuit against Ripple. Garlinghouse stated the alleged apology occurred during a White House briefing on digital asset policy in late 2024, where Gensler reportedly approached him and said, "I'm sorry... I was wrong," or simply "Sorry," before departing.
The claim, which remains unconfirmed by either the SEC or Ripple, originates from a report by cryptocurrency news outlet U.Today citing unnamed sources. Garlinghouse described the event as a "big surprise" and framed it as a victory for utility, stating, "This long journey was worth it. If we stick to our course and focus on usability, the road ahead is incredibly bright."
The backdrop is the landmark SEC lawsuit filed in December 2020, which alleged Ripple's sale of XRP constituted an unregistered securities offering worth over $1.3 billion. The case produced a pivotal ruling in July 2023 by Federal Judge Analisa Torres, who delivered a split decision: Ripple's programmatic sales of XRP on exchanges were not investment contracts, but its institutional sales violated securities laws. The SEC later dropped charges against Garlinghouse and co-founder Chris Larsen personally in October 2023, with the case now in a remedies phase focused on penalties for the institutional sales violations.
Legal experts note the profound symbolic significance of such an apology, should it be verified. Professor Sarah Johnson, a securities law scholar at Georgetown University, commented, "A personal apology in this context is highly unusual... It could reflect an internal acknowledgment of the case's strategic costs. The SEC expended enormous resources for a mixed result that arguably muddied the regulatory waters." The alleged incident is seen as a potential indicator of a broader shift in regulatory posture away from aggressive enforcement and toward more nuanced dialogue, coinciding with increased White House engagement on crypto policy.
