Ripple CEO Says U.S. Crypto Rules Near Turning Point as CLARITY Act Looms

TLDR:

• Ripple CEO says U.S. crypto rules are nearing a turning point as the CLARITY Act heads to a Sept. 15 vote.
• The Senate’s Sept. 15 cloture vote needs 60 votes to advance debate on the CLARITY Act, not pass the bill.
• Ripple’s SEC case ended in August 2025 with a $125.04M penalty and restrictions on institutional XRP sales.
• The SEC and CFTC issued joint crypto guidance in March, while the SEC proposed a broader framework on Aug. 18.

The United States has entered a critical phase in its long-running effort to define cryptocurrency rules, according to Ripple CEO Brad Garlinghouse. His assessment followed the CFTC’s inaugural Innovation Advisory Committee meeting on Aug. 20, where regulators, crypto executives, and traditional finance leaders met in Washington.

The meeting covered digital assets, artificial intelligence, and prediction markets. It also came as Congress prepared for a September procedural test of the CLARITY Act, keeping legislation at the center of the regulatory debate.

Washington Pushes U.S. Crypto Rules Toward a Turning Point

Garlinghouse described the CFTC gathering as an “Olympic roster” of industry and financial-market leaders. Members include Coinbase CEO Brian Armstrong, Uniswap Labs CEO Hayden Adams, and Chainlink Labs co-founder Sergey Nazarov.

Executives from Nasdaq, CME Group, Cboe Global Markets, DTCC, and the London Stock Exchange Group also participate, bringing traditional finance deeper into policy discussions. Against that broader institutional backdrop, Garlinghouse said participants largely agreed that older financial rules no longer adequately address modern digital markets.

That consensus also marks a notable shift from Ripple’s position seven years earlier. In July 2019, Garlinghouse and Executive Chairman Chris Larsen urged Congress not to treat every digital currency alike. They also warned that regulatory uncertainty could push jobs and investment overseas. Since then, however, the federal framework has evolved considerably.

That shift became more visible in March, when the SEC and CFTC issued joint guidance covering several crypto asset categories and transactions. The interpretation addressed staking, mining, wrapping, and airdrops while reaffirming that the Howey test remains the controlling legal precedent.

The SEC then proposed a broader framework on Aug. 18. That proposal includes new fundraising exemptions and a possible safe harbor for some digital assets. However, agency rules do not provide the same durability as federal legislation.

Sept. 15 Senate Vote Becomes the Next CLARITY Act Test

That legislative focus now shifts to Sept. 15, when the Senate is scheduled to hold a cloture vote on proceeding with H.R. 3633. The measure, formally called the Digital Asset Market Clarity Act, represents the next major test for U.S. crypto regulation.

The 2:15 p.m. ET vote would not pass the bill. Instead, it would determine whether the Senate can advance toward debate, with cloture requiring 60 votes. Even if lawmakers clear that procedural hurdle, several disputes remain unresolved.

Negotiations continue over ethics provisions, illicit-finance safeguards, and other market-structure issues. Against that backdrop, President Donald Trump urged Congress on Aug. 19 to pass a “fair version” of the legislation. The bill seeks to clarify when digital assets fall under securities or commodities oversight.

It also aims to define how regulatory authority should be divided between the SEC and CFTC. For Ripple, that distinction carries added significance after years of litigation involving XRP sales. The case formally ended in August 2025 after both sides dismissed their appeals.

However, a $125.04 million civil penalty and an injunction against unregistered institutional sales remained in force. Earlier, the district court ruled that programmatic XRP sales on public exchanges were not unregistered securities offerings. By contrast, certain institutional sales were found to have violated securities laws.

That legal history helps explain Garlinghouse’s continued emphasis on congressional action. Regulators have provided clearer guidance, but a durable nationwide market structure still depends on legislation. As a result, the September vote stands as the clearest near-term test of whether Washington can turn regulatory momentum into lasting federal law.

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