Ripple CEO Brad Garlinghouse said the failure of the CLARITY Act "definitely stung," acknowledging his personal investment in the crypto market structure bill's passage through Congress.
Despite the Senate cloture vote's 49-50 defeat on September 15, Garlinghouse contended that XRP holders remain in a secure position. He pointed to a July 2023 ruling by Judge Analisa Torres in Ripple's case against the SEC, which found that XRP is not a security by itself and that Ripple's sales of XRP on public exchanges were not securities offerings. However, Torres also ruled that Ripple's direct sales of XRP to institutional investors constituted unregistered securities sales.
"So, we have clarity," Garlinghouse said of the court's determination.
Regulatory Framework Emerges
Garlinghouse stated that the SEC and CFTC have moved into rulemaking to address areas the failed legislation was intended to cover. He suggested this regulatory action, combined with the court ruling, provides the framework previously sought through Congress.
Future Uncertainty Acknowledged
When asked whether a future SEC or CFTC leadership could reverse course on crypto policy, Garlinghouse acknowledged the possibility but argued that years of regulatory and legal progress cannot simply be undone. He agreed with the characterization that the industry cannot "put the genie back in the bottle."
With congressional action stalled, cryptocurrency's regulatory landscape now depends primarily on agency rulemaking and court decisions, both of which carry greater flexibility for change than statutory law.
