The multi-year enforcement strategy directed by former SEC Chair Gary Gensler is fracturing under consecutive court losses and immediate political pressure. Ripple CEO Brad Garlinghouse posted on X declaring the “anti-crypto army” has officially been defeated. Garlinghouse pointed to shifting voter sentiment and recent political backing from Donald Trump as the primary drivers of this regulatory reversal.
Years of coordinated pressure against digital asset firms are now misaligned with current legal outcomes. The declaration aligns with institutional capital moving back into Ripple’s native token. XRP is currently trading near $1.37 following $42 million in ETF inflows over the past week, maintaining upward momentum despite broader market volatility.
The corporate victory lap follows a protracted legal battle determining that secondary market sales of XRP do not constitute securities transactions. Garlinghouse’s specific claims regarding the defeat of anti-crypto forces and renewed political support were verified today, according to a KuCoin flash news update detailing the executive’s statements.
Beyond capital inflows, Ripple is executing structural upgrades. The XRP Ledger successfully updated to version 3.1.3 on the mainnet. This technical adjustment blocks older nodes to ensure network efficiency and supports the expanding volume of new wallet creation. The technical rollout happens against the broader history of U.S. cryptocurrency regulation, which previously relied on over 120 individual lawsuits against crypto companies to enforce compliance.
How the Digital Asset Market Clarity Act Alters Institutional Investment
The political rhetoric from industry executives is translating directly into legislative action. The U.S. Senate Banking Committee recently advanced the Digital Asset Market Clarity Act. This legislation directly challenges the SEC’s long-standing strategy of regulation by enforcement and establishes a concrete framework for digital assets.
Institutional momentum is actively pushing to secure commodity classification for tokens like XRP based on their specific network utility. Treating these assets as commodities rather than equity-like securities fundamentally alters how institutional brokerages interact with the tokens. Trading desks can integrate the assets without triggering the restrictive compliance reporting required for traditional equities.