Ripple CEO and ex-U.S. regulators speak at Senate hearing on crypto market structure, addressing transparency, oversight, and industry reform.
The hearing will be held following the passage of legislation by the US Senate to regulate stablecoins and the announcement by Republican House leadership that they will consider three measures beginning on Monday.
Top crypto executives, policy advocates, and former regulators are scheduled to testify before the Senate Banking Committee as the United States Congress considers critical legislation that has the potential to alter the regulatory framework for digital assets.
On Wednesday, the US Senate Banking Committee will hear from Ripple CEO Brad Garlinghouse, former Commodity Futures Trading Commission (CFTC) member and Blockchain Association CEO Summer Mersinger, former CFTC Chair Timothy Massad, Chainalysis CEO Jonathan Levin, and other experts to discuss digital asset markets.
The hearing will be one of the first opportunities for US legislators to preview the Senate’s approach to a crypto market structure bill, following the announcement by its leadership that it intends to pass legislation by October.
“We are at a critical inflection point,” stated Mersinger in his prepared testimony. “The decision we are faced with is not whether or not to regulate this industry, but rather how.”
We can either continue down a path of uncertainty that cedes our leadership and exports this innovation to other countries, or we can implement sensible, bipartisan legislation that solidifies our position as the premier destination for financial innovation for decades to come.
On Thursday, the Republican leadership in the House of Representatives announced their intention to address three pieces of crypto-related legislation as part of a regulatory “Crypto Week” that will commence on Monday.
One of the proposals is the Digital Asset Market Clarity, or CLARITY, Act, which is currently under consideration in the House. In June, the Senate passed the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act.
The chamber will also discuss legislation that aims to stymie the development of a digital currency issued by the US central bank, known as a CBDC.
Legislation may continue to be affected by potential conflicts of interest.
In the context of Ripple’s increasing involvement in policy discussions in Washington, D.C., the hearing will be one of Garlinghouse’s first direct appearances before US legislators.
Garlinghouse participated in a White House crypto summit in March, and the blockchain company contributed $5 million in XRP to the inaugural fund of US President Donald Trump.
A former White House ethics lawyer, Richard Painter, will also attend the hearing. He suggests that lawmakers could resolve concerns regarding Trump’s potential conflicts of interest in legislation concerning digital assets.
In anticipation of his inauguration, the United States president released his meme coin in January. Furthermore, he and his family are associated with the cryptocurrency company World Liberty Financial, which includes its stablecoin, USD1.
In May, several Democrats withdrew their support for the stablecoin bill during the initial Senate vote on the GENIUS Act, citing concerns regarding Trump’s crypto ventures.
Even though the bill was ultimately passed with Democratic support, certain legislators have indicated that they will persist in addressing concerns regarding Trump’s affiliations with the industry.
