Garlinghouse Alleges Gensler Apology at White House Event
During the XRP Australia Sydney 2026 event, Ripple CEO Brad Garlinghouse alleged that SEC Chair Gary Gensler personally apologized to him at a White House event. According to Garlinghouse, Gensler stated, 'I was wrong. You guys have done an incredible job,' in reference to Ripple's operations. Garlinghouse did not specify the exact date or broader context of the alleged encounter.
Background of the Ripple-SEC Legal Dispute
Ripple has been engaged in a legal dispute with the SEC since December 2020, when the agency alleged that Ripple and its executives conducted an unregistered securities offering through the sale of $XRP. Ripple consistently maintains $XRP is not a security. The lawsuit has seen rulings providing partial clarity on $XRP's classification; for instance, a July 2023 court determined programmatic sales of $XRP on exchanges did not constitute an investment contract, while direct sales to institutional investors did. The SEC, led by Chair Gensler, maintains many digital assets are unregistered securities. An alleged admission of being 'wrong' from the head of the SEC would starkly contrast with the agency's consistent public position and its legal arguments in ongoing litigation, a pattern observed in previous high-profile crypto enforcement actions.
Unverified Claim and Initial Market Reaction
As of current reporting, Brad Garlinghouse's claim remains an unverified statement. The SEC and Gary Gensler have not issued any public confirmation or denial regarding the alleged apology or the White House encounter.
Following the disclosure, $XRP decreased 4.46% to approximately $1.36. Despite this, $XRP exchange-traded funds (ETFs) recorded a net inflow of 848.59K $XRP, equivalent to $1.22 million, within a 24-hour window. Social media sentiment around the claim was mixed, with one prominent post disseminating the allegation registering a sentiment score of 32. Conversely, a major financial news network highlighting $XRP as a top crypto trade garnered a high sentiment score of 88.