Ripple CEO Brad Garlinghouse publicly urged the U.S. Senate on July 22 to advance the CLARITY Act, calling the legislation XRP’s last regulatory hurdle. Speaking as the bill faces a floor vote, Garlinghouse argued that a clear federal framework would finally unlock institutional capital that has been frozen by years of classification uncertainty.
What the CLARITY Act would do
The bill, led by Senator Cynthia Lummis, aims to give digital assets a defined legal status. Ripple’s chief legal officer, Stu Alderoty, framed it as a consumer protection measure — one that includes strong AML/KYC requirements and expanded enforcement tools for state attorneys general. Alderoty’s message: this isn’t a deregulation play, it’s a rulebook.
Lauren Belive, Ripple’s global head of public policy, warned that rejecting the bill could leave crypto users exposed to the same vulnerabilities that enabled the FTX collapse. That’s a direct appeal to lawmakers still scarred by 2022’s meltdown.
Senate math gets tight
Lummis is leading Republican defense of the bill, arguing it improves market oversight and provides clear operating rules for compliant companies. But seven Senate Democrats are pushing for stronger consumer and enforcement safeguards before they’ll vote yes. The margin for passage is thin, and those seven hold the swing.
Outside the Capitol, the pressure is building. Fidelity has urged Senate action, citing institutional investment trends that make regulatory certainty urgent. Goldman Sachs’ CEO has also expressed support for a defined digital asset framework. More than 200 organizations and over 1,200 technology firms have formally backed a federal crypto framework — a broad coalition that includes banks, exchanges, and startups.
Why XRP hangs on this vote
For Ripple, the stakes are existential. XRP’s unresolved classification — is it a security or isn’t it? — has kept it out of the largest capital pools. Institutional investors, from pension funds to endowments, won’t touch an asset whose legal status could shift overnight. The CLARITY Act would settle that question, at least at the federal level.
Garlinghouse didn’t mince words: this is the last regulatory hurdle. If the bill stalls, XRP stays in limbo. If it passes, the floodgates for institutional adoption could open.
The Senate is expected to take up the bill in the coming weeks. The question now is whether Lummis can hold her caucus and pick off enough Democrats to get to 60.
