David Edwards
In a major step toward growing its regulated operations in the US, blockchain-based payments company Ripple Labs has announced that it has obtained money transmitter licenses in Texas and New York.
Financial regulators in these two crucial jurisdictions have awarded licenses to Ripple, allowing the company to offer cross-border payment solutions, the company announced in a statement on January 27. Ripple has demonstrated its dedication to compliance and regulatory requirements by obtaining more than 50 money transmitter licenses in a variety of jurisdictions.
“Texas and New York have defined regulations and stringent licensing requirements with robust compliance standards and regulatory oversight,” Ripple noted in its announcement.
The action is anticipated to improve Ripple’s reputation in the United States, especially as New York is a center for digital asset companies and Texas is home to an increasing number of cryptocurrency mining operations.
This license success comes after Ripple CEO Brad Garlinghouse announced in December that the New York Department of Financial Services has approved Ripple’s stablecoin, RLUSD. The startup plans to further integrate blockchain technology into traditional financial systems by listing RLUSD on cryptocurrency exchanges.
The SEC’s Legal Challenges Against Ripple
Notwithstanding these developments, Ripple is still battling the U.S. Securities and Exchange Commission (SEC) in court. The question of whether Ripple’s native cryptocurrency, XRP, is a security is at the heart of the debate, which started in 2020.
The SEC and Ripple have subsequently challenged the court’s August 2024 ruling that found the company liable for $125 million in penalties. The Second Circuit appellate court is now reviewing the matter, and cross-appeal brief deadlines are still pending.
Political Relationships and Debates
Top Ripple executives have kept clear political ties, including CEO Brad Garlinghouse and Chief Legal Officer Stuart Alderoty. According to reports, the company made additional noteworthy political fundraising contributions and sent $5 million worth of XRP to former President Donald Trump’s inaugural fund.
Garlinghouse and Alderoty were both listed as official guests at Trump’s inauguration celebrations in Washington, D.C., and they both visited his Mar-a-Lago home in January. According to Ripple officials, 75% of the company’s job opportunities are now located in the US, indicating that Trump’s election has encouraged domestic employment.
