Today, July 9, marks a rare moment of convergence in Washington’s crypto narrative amid President Trump’s push to make the US the crypto capital of the world.
Ripple CEO Brad Garlinghouse is headed to Capitol Hill to testify before the Senate Banking Committee. Tax is quietly creeping back into the crypto spotlight elsewhere in the Capitol.
Brad Garlinghouse To Testify As Senate Zeroes in on Crypto Market Structure
The “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets” hearing will feature top industry figures. Today’s conversation is expected to influence how the US shapes the next phase of digital asset regulation.
The Senate Subcommittee on Financial Institutions and Digital Assets will host the hearing. It is part of an accelerating effort to codify crypto oversight.
Brad Garlinghouse, CEO of Ripple, will appear alongside Summer Mersinger of the Blockchain Association. Dan Robinson of Paradigm and Chainalysis co-founder Jonathan Levin will also attend.
In a post on X (Twitter), Garlinghouse called for “constructive crypto market structure legislation” that balances innovation with consumer protection.
His appearance highlights how Ripple, once locked in a protracted legal battle with the SEC, is repositioning itself as a willing regulatory partner.
Today’s testimony signals a shift from the courtroom to the committee room. This follows Ripple’s withdrawal of its cross-appeal in its long-running SEC case, and the agency is expected to follow suit.
Senate to Discuss Tokens’ Commodity Status
The US Senate will debate whether tokens like XRP qualify as digital commodities under US law. Lawmakers will examine these tokens’ fundamental characteristics, more closely examining their similarities to traditional commodities.
The Senate will also assess whether they meet the necessary criteria for this classification. If the Senate recognizes tokens as digital commodities, it would pave the way for a new wave of financial products.
The general sentiment is that this may be crucial in approving altcoin ETFs (exchange-traded funds). Such a development would allow investors to gain direct exposure to altcoins through regulated investment vehicles.
This could bring billions of dollars in institutional capital into the market and significantly boost mainstream adoption.
Addressing SEC and CFTC Divide: Who Regulates What?
Meanwhile, the testimonies come as lawmakers revisit the core question that has long plagued the industry: who regulates what?
On the other side of the bench, Senators Tim Scott, Cynthia Lummis, and Ruben Gallego will lead the push. The general sentiment is to align Senate priorities with the House’s upcoming “Crypto Week,” which begins July 14.
There, lawmakers will debate the same bills and possibly vote on final versions. Momentum has accelerated since President Trump expressed support for the GENIUS Act. The move prompted the House to fast-track its adoption over a previously competing bill.
The GENIUS Act has already passed in the Senate, and the CLARITY Act is still in draft form but has advanced only recently. The two bills are at the center of today’s debate.
The GENIUS Act aims to establish a stablecoin framework, including reserve requirements and federal licensing. The CLARITY Act, meanwhile, would assign primary oversight of most digital assets to the Commodity Futures Trading Commission (CFTC), reducing the role of the US SEC (Securities and Exchange Commission).
Tax Reform Reenters the Crypto Conversation
While market structure dominates headlines, the House Ways & Means Oversight Subcommittee will hold a hearing today on “Making America the Crypto Capital of the World.” The focus is to build a 21st-century tax policy framework for digital assets.
The proposal would exempt capital gains taxes on transactions under $300 up to a yearly cap of $5,000. This revision is intended to enable microtransactions and day-to-day crypto use without punitive tax consequences.
It also seeks to defer taxation of staking and mining rewards until those assets are sold or spent. This echoes arguments that unrealized gains should not be taxed.
Similarly, Senator Lummis is quietly reviving her push for crypto tax reform. On the heels of failed amendments to Trump’s budget bill, she has introduced a standalone bill to revise the Internal Revenue Code’s treatment of digital assets.
Additionally, the bill would extend securities lending rules to digital assets, allowing for clearer treatment of token lending agreements.
While still in the draft stage, Lummis has invited public comment and signaled that bipartisan support would be critical to advancing the bill through the Senate Finance Committee.
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