Caitlin Long: Ripple Hamstrung by SEC Crackdown, XRP Won’t Be Treasury’s Pick

Ripple is once again at the center of controversy after financial expert Caitlin Long delivered strong criticism against the company and XRP. Known for her work in the Bitcoin space and as the founder of Custodia Bank, Long voiced concerns about Ripple’s structure and history that she says continue to limit its credibility.

Caitlin Long Questions Ripple’s Design and Trustworthiness

Long claimed that Ripple’s real issue isn’t just the lawsuit from the U.S. Securities and Exchange Commission, but something deeper. She opened up about what she called a centralized network design and flawed token model. According to her, Ripple’s early decisions about XRP distribution created long-term problems, especially when it comes to trust from large financial institutions.

She argued that the way XRP was originally released, through a full pre-mine and early fundraising, has left a lasting impression on institutions. 

Long also commented on the long legal battle Ripple faced with the SEC. While she said it hurt the company, she said that the wider crackdown on crypto under the Biden administration affected many other projects too. 

Still, she was clear that in her view, Ripple is not a likely candidate for major government blockchain use. When asked what network the U.S. Treasury would choose to tokenize assets like U.S. Treasuries, she replied that it would likely be Ethereum, or possibly Bitcoin, but not Ripple.

Experts and XRP Supporters Respond

Caitlin Long’s comments didn’t go unnoticed. Critics were quick to respond, arguing that her statements were misleading or simply wrong.

One expert said it was shocking that Long would speak so confidently about Ripple while showing what appeared to be a complete misunderstanding of the project. 

First, Ripple never held an ICO. All 100 billion XRP were created at launch, and the token had no price in the early days. This is a key difference from Ethereum, which raised funds through a public ICO and distributed ETH using Bitcoin.

Second, the XRP Ledger is open and decentralized. Anyone can run a node, validate transactions, or even fork the network if they choose. It currently has over 1,000 nodes and more than 100 validators, many of them operated by independent businesses and individuals.

Others discussed how projects like Ripple continue to face criticism despite having legal victories and building real-world products.