U.S. Crypto Rules Near Test as Ripple Urges Clarity

A decisive week for U.S. crypto policy

Ripple CEO Brad Garlinghouse said on Aug. 22 that the United States is "closer than ever" to establishing clear rules for the cryptocurrency industry after attending a series of regulatory meetings in Washington, D.C. His comments followed the inaugural meeting of the Commodity Futures Trading Commission (CFTC) Innovation Advisory Committee on Aug. 20, where industry and traditional finance leaders discussed how existing financial rules should evolve to cover digital assets.

Garlinghouse’s take and the key meeting

Garlinghouse, a long-time advocate for clearer statutory guidance on crypto, framed the CFTC committee gathering as a milestone. He argued that rules drafted for a pre-digital era "aren't good enough" for consumers, businesses and innovation in blockchain and crypto markets. While his view signals industry momentum, it is important to note his remarks reflect a perspective rather than enacted federal law: Congress has not yet passed the comprehensive market-structure legislation that Ripple and other crypto firms seek.

The advisory committee and its limits

The CFTC appointed Garlinghouse to the Innovation Advisory Committee in February. Other notable members include Coinbase CEO Brian Armstrong, Uniswap Labs CEO Hayden Adams, and leaders from Nasdaq, CME Group and Cboe. The committee will advise the CFTC on technology, finance, legal and policy questions related to digital assets.

However, the committee can only recommend policy — it cannot pass legislation or unilaterally issue binding rules. Its findings may shape future rulemaking or enforcement priorities at the CFTC, but durable regulatory authority requires either formal rulemaking by agencies or statutory changes from Congress.

Regulators have already adjusted their approach

Garlinghouse’s optimism is also rooted in earlier agency action. In March, the Securities and Exchange Commission (SEC) and the CFTC issued a joint interpretation that categorized tokens into five groups: digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The guidance covered common industry activities such as airdrops, mining, staking and token wrapping, and clarified when a non-security token could be part of an investment contract.

While this interpretation gave market participants additional clarity, it is agency guidance — not federal law. Courts are not required to follow the interpretation, and future administrations or agencies could modify or withdraw it. SEC Chairman Paul Atkins described the guidance as a beginning rather than a final settlement of regulatory roles.

The CLARITY Act and a looming Senate test

The primary legislative test remains the Digital Asset Market Clarity Act (commonly referred to as the CLARITY Act). Senators plan a cloture vote on Sept. 15 to move debate forward. That procedural vote would require 60 senators to advance the bill to floor consideration — it does not equal final passage.

The bill still faces contentious policy questions, including how to treat stablecoin rewards, protections for decentralized finance (DeFi) users, illicit-finance controls, ethics provisions and consumer safeguards. These open issues mean the bill's fate is uncertain, even though Ripple and other industry players have publicly supported its objective of clearer statutory roles for the SEC and CFTC.

Ripple’s litigation: a partial legal victory with penalties intact

Garlinghouse also referenced Ripple's multi-year litigation with the SEC. A 2023 court finding concluded that XRP itself is not categorically a security in all contexts, a decision that granted Ripple some legal breathing room. Yet Ripple’s litigation ultimately left the company subject to a $125.04 million civil penalty and an injunction limiting future violations of securities registration requirements. The SEC and Ripple dismissed cross-appeals in 2025, leaving that judgment in effect.

Consequently, while the courts offered transactional clarity for certain XRP sales, the ruling did not create a nationwide statutory framework governing all future XRP transactions. Garlinghouse’s statement that the courts provided "clarity for XRP" must therefore be understood in that narrower legal context.

Market and policy implications for crypto participants

If Congress fails to clear the CLARITY Act’s procedural threshold, the SEC/CFTC interpretation will remain the primary high-level federal roadmap for market participants. Exchanges, DeFi platforms, stablecoin issuers and institutional traders will continue to rely on agency guidance and enforcement precedence to navigate compliance and product design.

On the other hand, successful Senate action could lead to a more durable statutory allocation of authority between the SEC and CFTC, reducing legal uncertainty for token issuers and accelerating institutional adoption. Key areas to watch include stablecoin regulation, custody and settlement rules, DeFi liability protections, and how token classifications affect listing decisions by exchanges.

What to watch next

Investors, crypto firms and legal teams should monitor the Sept. 15 cloture vote closely. Even if cloture is invoked, the bill would still face amendments and additional floor votes. Meanwhile, market participants should continue to follow agency guidance, CFTC advisory outputs and ongoing litigation outcomes that will shape enforcement trends.

Conclusion

Garlinghouse’s comments reflect a growing push for clearer, more modernized regulation of digital assets in the United States. The CFTC advisory committee and the SEC/CFTC joint interpretation have moved the discussion forward, but a definitive, durable framework will require legislative action. The Sept. 15 Senate procedural vote on the CLARITY Act represents the next pivotal moment — one that could determine whether the U.S. chooses statutory reform or continues relying on agency guidance and judicial decisions to manage crypto markets.