Ripple’s CEO Expresses Optimism Regarding Crypto Market Structure Legislation

• Garlinghouse praised the CLARITY Act as a major step toward clear U.S. crypto rules.
• The bill aims to define SEC and CFTC roles and strengthen investor protection.
• Momentum slowed after Coinbase withdrew support, forcing the Senate to delay markup.

Ripple CEO Brad Garlinghouse has reacted positively to new momentum around U.S. crypto regulation, calling the Senate Banking Committee’s CLARITY Act a “massive step forward” for the digital asset industry.

Garlinghouse Welcomes Regulatory Clarity

In a recent post on X, Garlinghouse said the move by Senator Tim Scott and Senate Banking Committee Republicans, though long overdue, represents meaningful progress toward workable crypto market structure rules. He stressed that “clarity beats chaos,” noting that Ripple has experienced firsthand how regulatory uncertainty can hold innovation back.

According to Garlinghouse, the success of the bill would not just benefit Ripple but the entire crypto sector. He added that Ripple remains actively involved in discussions and is optimistic that remaining issues can be resolved during the markup process.

CLARITY Act Heads to Key Senate Markup

Garlinghouse’s comments came in response to a detailed statement from the U.S. Senate Banking Committee GOP. It outlined the goals and scope of the CLARITY Act ahead of a key procedural markup scheduled for January 13, 2026.

The committee described the legislation as the result of more than six months of bipartisan negotiations and consultations with regulators, legal experts, academics, law enforcement, and industry participants. The aim is to replace fragmented oversight with a clear and enforceable regulatory framework for digital assets.

Defining Securities and Commodities

One of the central points of the CLARITY Act is its attempt to clearly define which digital assets fall under securities law and which are commodities. Under the proposal, assets classified as securities would fall under full SEC oversight, including disclosure requirements, resale restrictions, and anti-fraud protections.

The committee emphasized that the bill does not weaken securities law, arguing instead that it reinforces existing principles while adapting them to modern digital markets.

Related: Can One Bill Fix U.S. Crypto Rules? Inside the Push for the CLARITY Act

Investor Protection and Systemic Risk

The Senate Banking Committee describes the CLARITY Act as an investor protection bill to prevent another FTX-style collapse. The legislation would bring crypto markets into a formal regulatory structure, with penalties for fraud, manipulation, and abuse.

Lawmakers also argued that the real risk lies in regulatory uncertainty, which has pushed many crypto firms to operate offshore with limited U.S. oversight.

Addressing Illicit Finance and DeFi Concerns

The bill also includes provisions targeting illicit finance, sanctions compliance, and national security risks. According to the committee, it establishes the strongest anti-money laundering framework Congress has considered for digital assets while preserving lawful innovation.

Importantly, the CLARITY Act explicitly protects software developers and the right to self-custody. Developers who publish or maintain code without controlling user funds would not be treated as financial intermediaries. In other words, enforcement would remain focused on actual misconduct rather than the code itself.

Shift From Uncertainty to Structure

The Senate Banking Committee concluded that the CLARITY Act seeks to close regulatory gaps, allocate responsibilities between the SEC and CFTC, and replace years of uncertainty with a clear path forward.

Garlinghouse’s response suggests that major crypto firms see this moment as a potential turning point. Meanwhile, some industry stakeholders, such as Coinbase, are raising objections.

Senate Delays Crypto Bill After Coinbase Pulls Support

On Wednesday, Coinbase CEO Brian Armstrong said the company could no longer back the bill after reviewing draft language. He cited concerns over limits on tokenized equities, expanded government access to DeFi records, reduced CFTC oversight in favor of the SEC, and changes affecting stablecoin rewards.

As a result, the Senate Banking Committee postponed its planned markup, slowing momentum for U.S. crypto regulation. Chairman Tim Scott said negotiations are ongoing but acknowledged that unresolved disagreements made immediate action impractical.

Key sticking points include stablecoin rewards, ethics provisions, and regulatory authority. These pressures have divided lawmakers, including Republicans on the committee, leaving the bill without sufficient support to move forward.