Garlinghouse: Senate has two weeks to mark up crypto bill

Ripple Chief Executive Brad Garlinghouse told attendees at Consensus Miami that the Senate Banking Committee has roughly two weeks to hold a markup on a wide-ranging cryptocurrency bill, warning that delay would sharply reduce the measure’s odds of becoming law. He pointed to a crowded congressional calendar and the incoming midterm elections as limiting factors.

The proposal would create federal rules for digital assets and divide regulatory responsibility between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed its version, known as the Clarity Act, last year. In the Senate the bill must clear both the Agriculture Committee and the Banking Committee; the Agriculture panel has approved its version, but the Banking Committee has postponed action several times.

A central dispute has involved how to treat rewards tied to stablecoins. Senators Angela Alsobrooks and Thom Tillis reached a compromise last week on that question, a development officials say could allow a markup this month. Remaining issues include provisions addressing potential conflicts of interest connected to President Donald Trump and measures aimed at preventing illicit finance.

Garlinghouse argued legislation would offer more lasting certainty than agency guidance. Regulators such as the SEC and CFTC have issued guidance and a token taxonomy that in some instances described many cryptocurrencies as not being securities. He said a statute would be harder for a future administration to reverse.

“Hopefully the trend line has moved far enough that we don't go back no matter what, but codifying it into law means you kind of can't go back now,” he added.

The Senate still faces several steps if the Banking Committee moves forward: markup, committee votes, floor votes in both chambers and possible reconciliation between House and Senate versions. If the committee does not act, lawmakers are expected to shift focus toward fall campaign races and routine committee business, reducing the window for the bill to advance.

Garlinghouse also referenced Ripple’s long-running court fight with the SEC. The agency sued the company in 2020, alleging about $1.3 billion in XRP sales were unregistered securities offerings. A judge later found that some programmatic sales did not violate securities law because of how they were conducted, while certain direct institutional sales did qualify as securities. The ruling said XRP’s classification depends on the method of sale. Garlinghouse said that ruling provided clarity for XRP but that a law like the Clarity Act would be needed to set rules for other digital assets.