Garlinghouse To Senate: Ensure U.S Becomes the Crypto Capital of the World

Ripple CEO Brad Garlinghouse testified before the Senate Banking Committee on July 9, advocating for comprehensive legislation to provide clarity and stability to the digital asset sector. The hearing, titled "From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets," brought together lawmakers and industry leaders to discuss the future of cryptocurrency regulation in the United States.

Garlinghouse emphasized the detrimental effects of regulatory ambiguity on the U.S. crypto industry, stating in his written remarks that the lack of clear rules has "prohibited meaningful progress." He highlighted Ripple's own legal battles, noting that despite a favorable court ruling affirming that XRP is not inherently a security, the prolonged uncertainty has hindered the company's operations and growth. “At Ripple, we’ve seen firsthand how the lack of clear rules of the road can be weaponized to target good actors,” Garlinghouse said in his prepared testimony. “This has severely harmed American businesses, investors, and—of most concern—consumers.”

In his testimony, Garlinghouse laid out several key priorities for lawmakers. He argued that any new digital asset legislation must clearly define the jurisdictional boundaries between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as overlapping or conflicting authority has created confusion for innovators and investors. Defining these boundaries would allow companies to confidently develop and launch new technologies without the threat of regulatory retaliation.

Furthermore, Garlinghouse urged lawmakers to ensure the United States maintains a leadership role in the global digital economy by creating a modern, forward-looking regulatory environment. He warned that without clear and comprehensive legislation, innovation, investment, and talent could continue to migrate overseas. By embracing the benefits of blockchain technology and establishing a workable framework for digital assets, Garlinghouse argued, the U.S. could foster economic growth and technological competitiveness.

Garlinghouse emphasized that despite ongoing challenges, Ripple remains committed to educating and engaging with policymakers and regulators. To ensure companies can confidently operate in the U.S., he urged Congress to pass smart, principles-based legislation with three core objectives: clearly define the roles of key financial regulators, create compliant pathways for businesses without compromising consumer or investor protections, and position the U.S. as a global leader by harnessing the full potential of blockchain and digital assets.

The Senate Banking Committee’s hearing is part of a broader push in Congress to establish a federal framework for crypto markets. While bipartisan interest in regulating digital assets is growing, the path forward remains contested. Senators raised a range of concerns, from consumer protection to market manipulation and political conflicts of interest. Senator Elizabeth Warren, for example, used the hearing to call for rules that would limit crypto lobbying and prohibit high-level government officials from holding positions in crypto firms after leaving office, citing potential ethical risks.

The crypto industry has been closely watching developments in Washington, recognizing that any new legislation could have far-reaching implications for market operations and investor confidence.

Garlinghouse concluded his testimony with a direct appeal to lawmakers: “Speaking on behalf of the entire 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 U.S. becomes the crypto capital of the world.”

As Congress continues to debate the future of digital asset regulation, the decisions made in the months ahead are expected to shape the trajectory of the U.S. crypto industry for years to come. For many stakeholders, the July 9 hearing marked a turning point, one that could finally bring long-awaited clarity to one of the world’s most innovative and controversial sectors.