XRP: Ripple CEO Calls for Crypto Clarity in Senate Testimony

XRP took center stage as Ripple’s CEO Brad Garlinghouse gave pivotal testimony before the U.S. Senate Banking Committee during its first hearing focused on shaping crypto market structure legislation.

The hearing, held at 10:15 a.m. ET, brought together notable voices from the digital asset space, including Garlinghouse, Summer Mersinger from the Blockchain Association, and Dan Robinson of Paradigm. The core discussion revolved around creating transparent guidelines that distinguish crypto assets as either securities or commodities—an issue that has long muddied regulatory waters.

Garlinghouse offered an in-depth look into Ripple’s mission, XRP’s applications, and the pressing need for definitive crypto legislation. He began by introducing Ripple as a global enterprise employing over 900 staff across 15 offices. Founded more than ten years ago, Ripple aims to develop the “internet of value”—a system where monetary transactions can move as freely as data does.

He explained that Ripple offers technological solutions for asset custody, stablecoin deployment, and payments across borders. These tools, he said, empower banks and financial institutions to transfer funds faster and at reduced costs. “These aren’t just concepts—we collaborate daily with global banks relying on our infrastructure to make real-world differences,” Garlinghouse stated.

The XRP Ledger (XRPL) plays a foundational role in these operations, acting as the decentralized network behind Ripple’s services. According to Garlinghouse, XRP is the native currency enabling quick, low-cost, and scalable transactions. Leveraging XRPL allows Ripple to optimize international money transfers for speed and efficiency.

He emphasized Ripple’s long-standing compliance-first philosophy. From its inception, the company has engaged with policy makers and financial bodies around the world. This has culminated in Ripple accumulating over 60 operational licenses, both domestically and internationally, covering sectors from money transfers to crypto services.

Garlinghouse shifted the focus to what smart regulation should look like. He proposed four essential goals: shielding consumers from fraud, instituting robust market oversight, penalizing unethical actors, and promoting innovation. Well-crafted rules, he argued, could expand access to financial systems, spur economic growth, and solidify the U.S. as a digital asset pioneer.

Reflecting on past challenges, Garlinghouse highlighted how unclear regulations have obstructed progress. He pointed to Ripple’s own legal battle with the U.S. Securities and Exchange Commission (SEC) as a prime example. In late 2020, the SEC charged Ripple with unlawfully selling XRP as a security.

According to Garlinghouse, this lawsuit represented a potential crisis not just for Ripple, but the entire U.S. crypto ecosystem. Determined to contest the charges, Ripple fought a four-year litigation war, ultimately securing favorable outcomes. A federal court ruled that XRP itself is not a security, and that most transactions, especially those conducted via digital exchanges, were not investment contracts. While certain institutional sales did breach securities regulations, the majority ruling benefited Ripple and set a positive precedent.

Both Ripple and the SEC had initially moved to appeal the mixed verdict, but later agreed to withdraw their appeals, effectively bringing the drawn-out confrontation to a close.

Despite regulatory adversity, Garlinghouse stressed Ripple’s continued efforts to collaborate with lawmakers. He also doubled down on the necessity of principled legislation. He urged Congress to clarify the roles of regulatory bodies like the SEC and Commodity Futures Trading Commission (CFTC), to facilitate innovation while safeguarding investors, and to formalize frameworks ensuring U.S. technological dominance in digital finance.

Garlinghouse concluded by pointing out that over 55 million Americans are active participants in the crypto space. Given that the U.S. sits atop the deepest capital markets and has a longstanding heritage of innovation, Garlinghouse asserted that the nation deserves to lead the crypto revolution.

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He ended with a strong call to the Senate to enact comprehensive market structure legislation. “If passed into law, clear digital asset regulations will mark the beginning of a powerful new phase in U.S. financial leadership, bringing speed and cost benefits to millions of consumers and businesses,” he affirmed.