Ripple CEO Urges US Congress to Quickly Enact Legislation to Fuel Crypto Boom
Ripple CEO Brad Garlinghouse has called on the US Congress to quickly pass legislation governing the digital asset market, aiming to turn the country into a global hub for blockchain and cryptocurrency innovation. Speaking at a recent hearing before the Senate Committee on Banking, Housing and Urban Affairs, he stressed that a clear regulatory framework not only protects consumers but also opens up the potential for tremendous economic growth.
The US is losing its competitive edge to other countries
Although Ripple is one of the largest US-based blockchain technology companies, Garlinghouse said the US is falling behind due to a lack of regulatory certainty. He warned that the current environment of uncertainty is forcing innovative companies, especially in the digital asset space, to move overseas, pushing profits, technology, and jobs into the hands of other countries.
“There is no reason why the United States should not lead in the digital asset era,” Garlinghouse stressed. “We have the deepest capital markets, world-class engineering talent, and a strong tradition of innovation. But without clear laws, we will lose that advantage.”
Legislative priorities: defining authority and protecting innovation
In his presentation, the Ripple CEO outlined three key priorities that he believes Congress needs to address immediately:
Clearly defining the authority of regulators like the SEC and CFTC to avoid duplication and protracted debate.
Establishing market structure rules for digital assets that enable businesses to innovate without facing unclear legal risks.
Ensuring investor protection while not stifling the development of blockchain platforms and digital assets.
Garlinghouse believes that the law should not be a barrier but a launching pad for innovation and economic growth.
The fight with the SEC and lessons from Ripple
Ripple was embroiled in a long-running legal dispute with the US Securities and Exchange Commission (SEC), revolving around whether the company's native digital asset XRP was a security. In 2023, Ripple won a major court victory, with the ruling affirming that XRP, in the context of ordinary transactions, is not considered a security.
Garlinghouse said the lesson learned from the case was the need for clear legislation. “We have invested in compliance and operating transparently since day one. But without consistent regulation, any company no matter how good can be subject to arbitrary interpretations of the law.”
XRP and the potential for global innovation
Ripple now has nearly 900 employees and operates in 15 offices globally. The company operates the XRP Ledger, a decentralized, open-source blockchain designed to facilitate fast, low-cost, and scalable global payments.
XRP, Ripple’s digital asset, plays a key role in cross-border payment solutions and is being adopted by many major banks and financial institutions.
Final Call: An Opportunity to Lead That Can’t Be Missed
Garlinghouse concluded his speech with a call for urgent action by Congress. He asserted that enacting digital asset market legislation is not only necessary, but also a historic opportunity for the United States to assert its leadership in an area that has the potential to reshape the entire global financial system.
“If we don’t act quickly, other countries will seize this opportunity. But if we lead, clear legislation will not only protect consumers but also usher in a new era of innovation, efficiency, and economic growth,” he said.
Garlinghouse also expressed his desire to continue working with lawmakers to build the right regulatory framework that will help the United States become the cryptocurrency capital of the world.