Brad Garlinghouse, CEO of Ripple Labs, has released his full written testimony ahead of a critical appearance before the U.S. Senate Banking Committee scheduled for July 9, 2025.
The hearing, titled “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets,” is set to examine the current state of digital asset regulation and explore legislative efforts to shape future U.S. crypto markets.
In his testimony, Garlinghouse lays out Ripple’s vision for an “Internet of Value” and calls on lawmakers to provide legal clarity that supports blockchain innovation while protecting consumers.
He stresses that without immediate congressional action, the U.S. risks losing its competitive edge in financial technology.
XRP Highlighted as Key to Cross-Border Efficiency
Garlinghouse details Ripple’s core mission: to enable seamless value transfer globally. He notes that Ripple’s blockchain-based solutions reduce friction in cross-border financial transactions and are already being used by institutional clients worldwide.
“Our company leverages the XRP Ledger, a decentralized and energy-efficient blockchain, along with its native digital asset, XRP, to facilitate fast, low-cost, and scalable international payments,” said Garlinghouse.
He emphasized that XRP was specifically engineered for utility in real-time settlement, providing a viable alternative to outdated correspondent banking systems.
The CEO further noted that Ripple’s technologies are being deployed not only for payments but also in emerging stablecoin and tokenization markets. In May 2024, Ripple launched its own USD-backed stablecoin, Ripple USD (RLUSD), designed to compete with market leaders like USDC and USDT.
This expansion into stablecoins underlines the company’s ambition to become a comprehensive infrastructure provider for institutional-grade digital finance.
Legal Uncertainty and SEC Battle Underpin Call for Reform
Garlinghouse’s address also draws attention to the regulatory headwinds Ripple and other blockchain companies have faced in the U.S. He recounts Ripple’s legal conflict with the U.S. Securities and Exchange Commission, which began in 2020 and culminated in a partial legal victory in 2023 when XRP was ruled not a security in certain contexts.
“The SEC’s aggressive litigation strategy created a cloud of uncertainty that stifled growth and deterred investment,” Garlinghouse writes. “Our eventual legal win not only clarified XRP’s regulatory status but empowered other firms to defend themselves against regulatory overreach.”
He argues that Congress must take the lead in crafting comprehensive legislation to prevent similar enforcement-driven disruptions.
Garlinghouse endorses pending proposals such as the Financial Innovation and Technology for the 21st Century Act (FIT21) and the Crypto Clarity Act, which aim to clarify jurisdiction between the SEC and the Commodity Futures Trading Commission (CFTC) and establish definitions for digital assets.
Policy Recommendations: Protect Innovation Without Sacrificing Oversight
Garlinghouse outlines a framework for crypto regulation that emphasizes balanced oversight. He recommends that lawmakers:
- Clearly define the regulatory perimeter between the SEC and CFTC.
- Enable blockchain firms to grow within the U.S. without diluting investor protections.
- Foster innovation to help maintain U.S. leadership in the global digital economy.
“Legislation must ensure consumers are shielded from fraud and bad actors, while allowing legitimate businesses to thrive,” he stated. “The goal should not be to fit digital assets into decades-old frameworks but to modernize them for today’s technologies.”
He warned that continued uncertainty would push innovation offshore, noting that Ripple has already seen faster regulatory approvals and greater adoption in Europe, the Middle East, and parts of Asia.
Conclusion: Ripple Urges Swift Legislative Action
Garlinghouse’s testimony serves as both a defense of Ripple’s operations and a broader appeal to U.S. lawmakers to secure the country’s role in shaping the future of finance. As the crypto industry matures and global regulatory standards begin to solidify, Garlinghouse believes the U.S. has a narrow window to lead or risk falling behind.
With Ripple increasingly involved in policy discourse and continuing to expand its product suite, including enterprise liquidity solutions and stablecoins, Garlinghouse’s remarks are expected to influence ongoing Senate discussions around market structure, investor protection, and technological leadership.
The July 9 hearing is anticipated to be one of the most pivotal moments in 2025 for shaping U.S. crypto policy.
