The prolonged legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) appears to be nearing its conclusion. Ripple has conceded its cross-appeal, and market commentators wait on what comes next for the SEC. If the agency also withdraws, then the case will resolve within days or weeks.
Ripple CEO Brad Garlinghouse is stating before the Senate today, aiming to reinforce the need for clear crypto regulation. Citing Ripple’s “Internet of Value” vision of money’s flowing as easily as data does, and reemphasizing the company’s compliance-focused strategy with over 60 licenses worldwide.
Ripple’s Court Victory Redefines Cryptocurrency Regulation
Garlinghouse clarified that regulation should necessarily tip the scale toward protecting consumers, ensuring market integrity, and stimulating innovation but stressed that regulatory uncertainty had harmed the United States’ cryptocurrency industry by sending businesses. Notably, Ripple was the first major crypto firm sued by the SEC back in 2020.
He described how the SEC’s case had raised a question of whether or not XRP was a security. After four years, the court ruled that XRP itself isn’t a security, a historic win for Ripple and the broader industry. This outcome is now expected to shape future crypto regulatory policies in the United States.
Garlinghouse Calls for Passage of CLARITY Act
Garlinghouse used his testimony to push for the importance of legislating the CLARITY Act, which will introduce definitive regulations on digital assets. As per him, there is a need for this legislation to witness innovation thrive while introducing protection and transparency to Americans’ fast-evolving crypto space.
He also made remarks about US’s dominance in capital markets, innovation, and technical knowledge, noting that it’s just the right leader in blockchain. More than 55 million Americans are now active in the crypto economy, and he argued that clear regulations would lead to more innovation, more economic engagement, and better protection of consumers from risk.
Garlinghouse’s role in Senate cryptocurrency policy considerations has grown dramatically following Ripple clearing its legality hurdles and applying for a U.S. banking charter. His influence could determine the future direction of domestic cryptocurrency regulation in the months to come.
The Senate hearing is Garlinghouse’s first public discussion with Senator Elizabeth Warren, who has long been aggressive about crypto perils. With Ripple’s legal saga ending and its policy efforts accelerating, the company stands ready to help shape the U.S. crypto landscape in a post-lawsuit world.
Also Read: Ripple applies for U.S. Bank license to expand RLUSD
