Ripple CEO Brad Garlinghouse said the United States is closer than ever to establishing clearer cryptocurrency rules after a week of regulatory discussions in Washington. His comments came after he participated in the CFTC’s inaugural Innovation Advisory Committee meeting on Aug. 20.
Garlinghouse’s assessment reflects growing optimism around regulatory progress, but comprehensive federal crypto market-structure legislation has yet to become law.
Ripple joins CFTC policy discussions
Garlinghouse said policymakers and industry leaders increasingly recognize that financial regulations created for traditional markets do not always fit digital assets and emerging technologies.
He made the comments after joining the CFTC committee, which includes executives from major financial and crypto companies. The group advises the agency on technology, markets, law and policy, but it does not have the authority to pass legislation or independently create new regulations.
Its recommendations could nevertheless influence future CFTC policy, regulatory proposals and enforcement priorities.
SEC and CFTC provide more clarity, but guidance is not legislation
Part of Garlinghouse’s optimism stems from a joint SEC-CFTC interpretation issued in March.
The framework outlined five broad categories for digital assets, including digital commodities, digital collectibles, digital tools, stablecoins and digital securities. It also addressed issues such as staking, mining, airdrops and token wrapping, while explaining when a token that is not itself a security could still be connected to an investment contract.
The guidance became effective March 23, giving market participants greater insight into how the two agencies currently approach different types of crypto assets.
However, the framework remains agency guidance rather than federal law. It can potentially be revised by future regulators, and it does not establish a permanent statutory division of authority between the SEC and CFTC.
That distinction is important: regulatory clarity has improved, but Congress still needs to act for a durable federal framework to emerge.
CLARITY Act faces a crucial Senate vote
The biggest legislative test is expected on Sept. 15, when the Senate is scheduled to consider a cloture vote on proceeding with the Digital Asset Market Clarity Act.
The procedural vote requires 60 senators. Passing it would allow the Senate to begin formal consideration of the legislation, but it would not represent final approval. The bill would still face debate, amendments and additional votes.
Several contentious issues remain unresolved, including stablecoin rewards, decentralized finance, consumer protections, ethics requirements and measures targeting illicit finance.
Those disagreements leave the bill’s ultimate passage uncertain, despite support from Ripple and other major participants in the crypto industry.
Ripple’s SEC case ended with a penalty
Garlinghouse also pointed to Ripple’s long-running legal battle with the SEC as an example of the progress made toward greater clarity around XRP.
The court’s rulings distinguished XRP itself from particular transactions involving the token. However, Ripple’s legal victory did not eliminate all consequences from the case.
The company ultimately faced a $125.04 million civil penalty and an injunction related to future securities-registration violations. Ripple and the SEC later dismissed their cross-appeals, leaving the final judgment intact.
As a result, describing the case as providing complete legal certainty for every future XRP transaction would be too broad. The court’s decisions addressed the specific transactions and circumstances before it rather than creating a nationwide regulatory framework for digital assets.
The next major test
The Sept. 15 Senate vote could therefore become an important indicator of whether the United States is moving from agency-level guidance toward legislation.
If the CLARITY Act fails to secure the required 60 votes, the existing SEC and CFTC guidance would remain the primary federal framework while lawmakers determine whether negotiations can resume.
For the crypto industry, the distinction is significant: regulators can provide guidance, but only Congress can deliver the durable statutory framework that companies have been seeking.
