The U.S. Senate Banking Committee convened on July 9 to discuss cryptocurrency regulations, featuring Ripple CEO Brad Garlinghouse as a key speaker. Garlinghouse emphasised the need for clear regulatory frameworks, allowing the US to continue leading the way in the global competitive cryptocurrency market. The roundtable highlighted an extraordinary time for the cryptocurrency industry as participants and regulators alike try to navigate a space still rife with regulatory uncertainty.
Alongside Garlinghouse, Jonathan Levin, head of Chainalysis, Summer Mersinger from the Blockchain Association, and a Harvard University academic contributed to the discussion. Their combined expertise and perspective was intended to deliver the fullest picture possible of the risks and rewards at play in the still-nascent world of crypto.
Garlinghouse specifically highlighted the need for regulations that provide clarity, enabling businesses to innovate and operate confidently within the United States. Ripple as a company has been very involved with regulators since 2013. This new effort is a demonstration of its good faith commitment to compliance and the pursuit of regulatory clarity.
The proposed CLARITY Act would address a key issue. These comments have the goal of informing regulators as they separate crypto assets into buckets of securities or commodities, crypto-native or not. Senator Tim Scott is the leading advocate for the CLARITY Act. With the right political will and consensus, we may see a vote on the CLARITY Act by October.
Jonathan Levin of Chainalysis discussed compelling data that demonstrate how transparent blockchain tools have helped law enforcement fight against illicit activities. Summer Mersinger of the Blockchain Association made it clear that regulatory opacity inhibits business innovation and overall growth in the burgeoning cryptocurrency industry.
All four of these Senators—Senators Scott, Lummis, Tillis and Hagerty—have collaborated on releasing a joint set of principles specifically dedicated to encouraging this regulatory clarity. Garlinghouse’s release went on to specifically thank Senators Tim Scott, Cynthia Lummis and Representative Ruben Gallego for their supportive stances on cryptocurrency.
We applaud the GENIUS Act’s intent to establish a standardized licensing framework. Essentially, this framework will govern all financial intermediaries, exchanges and custodians in the crypto market. This framework provides the private sector with the clarity and certainty of standards that are clear, uniform and transparent. It helps to encourage continuity and increases investor certainty.
