Ripple CEO Brad Garlinghouse stated that the United States has never been closer to crypto regulatory clarity. He made this statement amid discussions of the CLARITY Act in the US Congress, a bill designed to separate digital asset oversight authority between key regulatory agencies.
According to Garlinghouse, this optimism stems from a shift in perspective among regulators, specifically within the Commodity Futures Trading Commission (CFTC). Leaders from both the crypto and traditional finance industries sitting on the CFTC advisory committee now agree on one thing: the old rules are no longer relevant to regulating today’s market. The view that the old framework is obsolete has now become a common ground for parties that often hold opposing positions.
This consensus between crypto players and TradFi represents a tangible push. As these two camps begin to demand equal treatment, policy direction faces more focused pressure to create a new framework that fits real-world conditions.
Direct Interest Through RLUSD Launch
Garlinghouse’s comments come at a time that aligns with Ripple’s business moves. The company is not merely an observer, but the party that most needs this legal foundation finalized quickly. They recently launched RLUSD, a stablecoin specifically designed to serve the institutional credit market.
Large-scale credit services like RLUSD clearly require legal certainty. Institutional clients avoid financial products that remain in regulatory gray areas. Through the CLARITY Act - a draft considered the most comprehensive in dividing jurisdiction between the SEC and the CFTC - Ripple hopes to secure clear boundaries.
A transparent division of authority between the SEC and CFTC will eliminate the legal hurdles that have slowed institutional adoption. Garlinghouse believes the crypto industry is starting to sense positive signals toward more lenient regulations in Washington.
Backup Regulatory Scenario from the CFTC
The positive stance from the Ripple boss received additional momentum from regulatory dynamics. Previously, the CFTC was reported to have started preparing its own new regulatory framework. This step was taken as a safety net if the CLARITY Act is delayed or fails to be passed by lawmakers.
The CFTC’s plan for backup rules shows a shift in attitude. Regulators are preparing to move forward in formulating new policy even without pressure from Congress. Garlinghouse sees this as proof that the old guidelines limiting the industry have been abandoned.
For traditional financial institutions holding back their capital due to the absence of clear laws, these parallel moves by Congress and the commission are worth watching closely. Once the boundary between securities and crypto commodities is clearly established, the corporate funding tap will have an open path to flow in.
Reported from @Cointelegraph on X.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
