Ripple CEO Brad Garlinghouse took aim at Strategy and its preferred-stock funding approach, labeling it "financial engineering" that has distracted the broader crypto market. He pointed to STRC's slide to a record low as evidence of the damage, arguing the strategy has drawn attention away from more productive developments in the space.
The criticism comes from the head of the company behind XRP, a direct rival to bitcoin. Garlinghouse remains long-term bullish on bitcoin itself but contends that leverage-heavy structures championed by Michael Saylor create unnecessary volatility and undermine market confidence. The remarks highlight a growing schism between crypto leaders over how to sustainably fund and grow digital-asset exposure.
Garlinghouse's comments carry weight given Ripple's ongoing legal battles with the SEC and its push for clearer crypto regulations. The critique also lands as the broader crypto market grapples with regulatory uncertainty and fluctuating investor sentiment. Investors are watching whether such high-profile disagreements could further fragment market narratives.