My name is Brad Garlinghouse and I'm the CEO of Ripple. Ripple has approximately 900 employees across our 15 offices worldwide. We were founded more than a decade ago with a mission to enable the internet of value, a world where money moves like information does today. We build software products that power cross-border payments, stablecoins, and digital custody.
Ripple helps financial institutions reduce friction, unlock efficiencies, and serve their customers better. These are not abstract concepts. We work every day with banks that rely on our technology to deliver real results in the global economy.
Ripple leverages the XRP Ledger, a decentralized, battle-tested open-source blockchain, as well as its native digital asset XRP, to facilitate payments. XRP is built to enable fast, low-cost, and highly scalable transactions. From the start, Ripple made the deliberate choice to work with policymakers and regulators, not around them. We have taken a compliance-first approach, operating with over 60 payment service, crypto, and money transmitter licenses domestically and globally.
With regard to the topic of this hearing, we believe smart legislation should be based on several core principles. Consumers need protection from fraud and scams. Markets need proper oversight. Bad actors need to be kept in check. And innovation must thrive. A constructive and workable framework for digital assets and stablecoins that achieves these goals will expand access to financial markets, create jobs, strengthen the economy, and put the US on the path to being a global blockchain and crypto leader.
For the last decade, the legal and regulatory uncertainty surrounding crypto has prohibited meaningful progress in the US. At Ripple, we certainly saw firsthand how the lack of clear rules of the road can be weaponized to target good actors. In turn, the technology, jobs, and tax dollars that go with it are pushed offshore, reducing regulatory oversight and putting consumers at higher risk. This has severely harmed American businesses, investors, and most concerned, consumers.
Ripple was the tip of the spear for this regulation-by-enforcement campaign and was subject to an enforcement action in 2020. We were the first leading US company to be sued by the SEC. We and many others understood that a loss here would be a death knell for the industry. Fortunately, after four years of a hard-fought legal battle, we prevailed. The court ruled in our favor on everything that mattered, including finding that the token XRP is not in and of itself a security. Our victory cleared the path for other market participants to fight back.
Despite these headwinds, Ripple still prioritizes education and engagement with policymakers and regulators globally. For companies to have the confidence to continue doing business in the United States, Congress should focus on passing principled and smart legislation with these critical goals in mind. First, set clear jurisdictional boundaries for our main financial regulators. Second, establish pathways for companies to build in the US without sacrificing investor or consumer protections. And third, ensure that the US can be a global leader in crypto by taking full advantage of the benefits and efficiencies brought by digital assets and blockchain technologies.
The US possesses the world's deepest capital markets, the most advanced technical talent, and a spirit of innovation that has powered our nation since its founding. There is no reason we should not be the undisputed leader in digital assets and blockchain. Over 55 million Americans participate in the crypto economy today, equating to over a $3.3 trillion market cap. A smart regulatory framework for crypto market structure is essential to realize that future and is overdue.
Speaking on behalf of the crypto industry, I urge you to prioritize the passage of market structure legislation for digital assets through this committee and the full Senate to provide the rules and regulations needed to ensure that the US becomes the crypto capital of the world. Once market structure legislation for digital assets becomes law in the United States, this will catalyze a new era of US competitiveness and unlock efficiencies in financial transactions, dramatically helping consumers and businesses alike. Ripple hopes to see this become a reality and we look forward to working with you to help make this happen.
