Ripple CEO Brad Garlinghouse has warned that the next two weeks will be critical for the fate of US cryptocurrency regulations, suggesting the proposed legislation could either move forward or stall entirely. Speaking at the Consensus event in Miami, Garlinghouse stressed that immediate action from the Senate Banking Committee is urgent. Without it, the law providing the regulatory framework for the crypto market could lose momentum rapidly.
Key stage in crypto legislation and political timeline
The legislation in question, shaped under the CLARITY Act, aims to establish a federal oversight structure in which regulatory authority over crypto assets is split between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The House of Representatives passed the bill last year, but the process has slowed significantly in the Senate.
Before reaching the Senate floor, the bill must clear both the Agriculture Committee and the Banking Committee. While the Agriculture Committee has advanced its own version, the Banking Committee has been delayed by disputes over issues such as stablecoin rewards, conflict of interest concerns, and rules against illicit finance.
Recently, negotiations on stablecoin rewards between Angela Alsobrooks and Thom Tillis yielded a breakthrough, signaling that some major obstacles are being addressed. However, Garlinghouse pointed out that time is running short, and emphasized that the political schedule, marked by the November midterm elections, is likely to make passage even more difficult as the legislative window narrows.
According to Garlinghouse, if the long-anticipated federal crypto legislation is not brought up before political campaigning begins, its path to becoming law will become far more complicated.
Ripple’s priorities: Public offering not imminent
Brad Garlinghouse stated that Ripple has no plans to pursue a public offering in the near term, citing the company’s solid financial position and lack of need for public capital. He explained that Ripple is currently focused on product development, acquisitions, and expanding its suite of corporate financial services instead of considering an IPO. Ripple’s president Monica Long echoed this stance, saying that going public is not on their agenda at this time.
Ripple pointed out that last year, the company processed nearly $13 trillion in payments through its treasury infrastructure, underlining its drive to integrate blockchain technology into traditional financial operations. Initially, these payments are not directly processed in crypto or stablecoins, but the company sees this as a major opportunity for transformation over the long term.
As part of its growth strategy, Ripple recently completed the $1.25 billion acquisition of Hidden Road (now rebranded as Ripple Prime), and launched RLUSD, a fully regulated, dollar-backed stablecoin.
No public offering until regulatory clarity
Garlinghouse said Ripple would not seriously consider a US IPO until a stronger regulatory framework is in place. The company recently spent years in litigation with the SEC over the status of XRP as a security. A federal judge found that XRP itself is not inherently a security, while some institutional sales made by Ripple qualified as securities transactions. Garlinghouse described this as a step towards clarity for XRP, but insisted that only a federal law can deliver definite legal certainty for the entire crypto sector.
Garlinghouse noted that since regulatory guidance and token classifications handed down by political administrations can change over time, putting crypto regulations into law is essential for providing the industry with a solid legal foundation.
Across the US, crypto companies continue to seek clear rules covering exchange operations, custody, new token listings, and institutional trading. The goal is for the CLARITY Act to serve as a reference point for the regulation of all digital assets, not just XRP.
Garlinghouse believes that the crypto industry is gaining momentum, but warned that as the legislative calendar shrinks, the window for passing the new law is closing fast. The next move from the Senate Banking Committee will determine whether the bill can become law before election season starts.
