- Ripple CEO Brad Garlinghouse will testify before the Senate on crypto market legislation.
- Lawmakers push for clear crypto rules with the GENIUS and CLARITY Acts gaining traction.
- Garlinghouse’s testimony marks the industry’s shift from legal battles to shaping regulation.
Ripple CEO Brad Garlinghouse is heading to Washington, D.C., this week for a high-stakes moment in crypto regulation. On Wednesday, July 9, he will testify before the U.S. Senate Banking Committee. The hearing is titled, “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets.” It aims to address how digital asset markets should be regulated in the U.S.
Garlinghouse thanked Senators Tim Scott, Cynthia Lummis, and Ruben Gallego for their leadership. The three senators lead the Senate Subcommittee for Digital Assets and have been vocal in supporting crypto innovation. Garlinghouse said strong crypto legislation could create innovation while protecting consumers.
The hearing comes at a crucial time for the digital asset sector. The Congress is currently discussing ways to control cryptocurrencies, stablecoins, and digital trading platforms. Examples include the CLARITY Act and the GENIUS Act. These suggestions aim to modernize the U.S.’s approach to digital assets and clarify the specific functions of financial agencies.
Ripple’s Ongoing Role in the U.S. Regulatory Space
The attendance of the Ripple CEO at the Senate hearing provides more insight into the company’s long-standing engagement with regulators. Ripple has engaged with various agencies since 2013, including the SEC, CFTC, and FinCEN. Most importantly, Ripple engaged in a long court struggle with the SEC regarding its XRP token. The case was about whether XRP was a security or not.
That lawsuit began in December 2020 and lasted nearly five years. A court ruling stated that XRP is not a security in some instances. Recently, Ripple withdrew its cross-appeal, and the SEC is expected to follow suit by dropping its appeal as well. This move signals that both sides may be ready to move forward.
Ripple has continued building its ecosystem during this period. It launched RLUSD, a stablecoin, and continues to support development on the XRP Ledger. The company’s return to Washington comes as it repositions itself in a maturing U.S. crypto market.
Lawmakers Push for Market Clarity and Consumer Protections
Garlinghouse won’t be the only voice at Wednesday’s hearing. Other witnesses include Summer Mersinger from the Blockchain Association, Jonathan Levin from Chainalysis, and Dan Robinson of Paradigm. The hearing will be livestreamed to the public, allowing broader access to the discussion.
The GENIUS Act is among the bills expected to take center stage. It outlines stablecoin regulations, including reserve requirements and licensing. The Senate has already passed this bill. The CLARITY Act, however, remains under review. It proposes clearer boundaries between the SEC and CFTC regarding digital assets.
Related: U.S. Senate Shifts Focus to Crypto Market Structure in Regulatory Push
The goal is to eliminate confusion over who regulates what in the cryptocurrency sector. The current system has led to uncertainty, lawsuits, and hindered innovation. Lawmakers and industry players agree that a clear framework is needed.
The SEC has recently signaled a shift in tone. After years of tough enforcement, the agency has opened more discussions with the industry. This new attitude may help bridge gaps between regulators and crypto firms. Garlinghouse’s testimony could further that dialogue.
The appearance of Ripple in the Senate signals a new phase in the company’s story. It also indicates that crypto leaders are willing to contribute to the development of future regulations. The U.S. approach to digital assets may be shifting toward a more collaborative era. As the crypto market matures, so does its relationship with the government.
