Ripple CEO Brad Garlinghouse said the United States is approaching clearer regulatory guidelines for cryptocurrencies after recent meetings in Washington. His remarks followed the inaugural session of the Commodity Futures Trading Commission (CFTC) Innovation Advisory Committee, held on August 20. The meeting brought together executives from both the digital asset sector and traditional finance.
CFTC advisory panel and legislative developments
Garlinghouse, appointed to the CFTC Innovation Advisory Committee in February, described the progress as significant, though not a completed transition to comprehensive federal regulation. The committee includes notable figures such as Coinbase CEO Brian Armstrong, Uniswap founder Hayden Adams, CME Group CEO Terry Duffy, Nasdaq CEO Adena Friedman, and OCC Chairman Craig Donohue.
The CFTC Innovation Advisory Committee provides input on financial technology, regulatory matters, and legal frameworks to the CFTC. Despite its influence, the panel cannot enact legislation or directly issue regulatory measures on its own.
Garlinghouse stated that committee members widely agreed legacy financial laws do not sufficiently address the challenges of digital assets. He said current frameworks fall short for both consumers and businesses, creating obstacles to financial innovation.
ETH
SOL
BSC
ROBINHOOD
USDT
AAPL
Garlinghouse observed that many participants recognized a gap in rules, noting broad agreement that legacy approaches are inadequate for managing modern digital assets and innovative technologies.
Congress has yet to pass major market structure legislation, such as the Digital Asset Market Clarity Act, a bill supported by Ripple and other crypto-oriented businesses. The Senate will consider a procedural measure known as cloture on September 15, a step that requires approval from at least 60 senators before formal debate on the bill can begin.
A positive cloture vote would allow the chamber to discuss and potentially amend the legislation, though it would not guarantee final passage. The process could involve additional rounds of amendment and voting until the bill becomes law.
| Key milestone | Date | Senate votes required | Outcome |
|---|---|---|---|
| Cloture vote | September 15 | 60 | If passed, opens debate; not final approval |
| Bill passage | To be determined | Majority | Potentially becomes law if approved |
Key disagreements remain on several parts of the legislation, including rewards for stablecoins, safety rules for decentralized finance, ethical standards, anti-money laundering controls, and consumer protection. These open issues contribute to ongoing uncertainty around the bill’s prospects.
Regulatory guidance and ongoing legal actions
Beyond Congress, the Securities and Exchange Commission (SEC) and CFTC issued a joint interpretation in March clarifying how various digital assets, such as digital commodities, stablecoins, collectibles, and securities, are classified under existing federal frameworks. The agencies also addressed concepts like airdrops, mining, staking, wrapped tokens, and investment contracts, providing market participants with increased regulatory guidance.
This guidance, in effect since March 23, clarifies agency approaches but does not carry the force of law, as Congress must enact any binding rules. Courts or future regulators may modify or disregard these recommendations.
Garlinghouse also mentioned the lengthy litigation with the SEC that focused on whether XRP constitutes a security. A 2023 court ruling found that XRP itself is not a security and separated the asset’s legal status from certain sales cases.
However, Ripple faced a $125.04 million civil penalty and an injunction related to securities registration requirements. Both Ripple and the SEC filed and later withdrew appeals in 2025, finalizing the outcome and closing litigation on this issue.
The final ruling reinforced that specific sales may have violated securities regulations but determined that XRP, as a token, is not itself a security. The conclusion carried both penalties and clarifications, which Ripple and the SEC ultimately accepted by dropping further appeals.
With significant regulatory and legal events approaching, the focus now turns to the Senate vote on September 15. Should the chamber fail to secure cloture, existing agency guidance from the SEC and CFTC will continue to guide the crypto market, with any further changes subject to post-midterm congressional action.
Mini dictionary: Commodity Futures Trading Commission (CFTC), an independent US federal agency regulating commodity futures and derivatives markets, playing a growing role in digital asset oversight.
