Garlinghouse: Federal crypto rules closer after White House

Ripple CEO Brad Garlinghouse said federal rules for digital assets are closer after attending a White House meeting on Aug. 19 and the Commodity Futures Trading Commission’s Innovation Advisory Committee on Aug. 20. The gatherings included federal regulators, bank and exchange representatives, and leaders from major market infrastructure firms.

The White House meeting brought President Donald Trump together with cryptocurrency executives, regulators and representatives from banks and exchanges to discuss draft legislation, capital formation, tokenization and U.S. technological competitiveness. Participants urged the Senate to advance the CLARITY Act, which would set federal market-structure rules for digital assets. Garlinghouse highlighted a National Cryptocurrency Association estimate that about 67 million U.S. adults report owning crypto; that figure comes from a Harris Poll of self-identified holders and does not count verified wallets or accounts. Ripple Chief Legal Officer Stuart Alderoty is president of the association responsible for the estimate.

The CFTC’s inaugural Innovation Advisory Committee meeting covered regulatory overlap, inconsistent interpretations of rules, consumer protections and the absence of a single federal market framework, along with topics such as artificial intelligence and prediction markets. Executives from Nasdaq, CME Group, Cboe, the New York Stock Exchange, the Options Clearing Corporation and the Depository Trust and Clearing Corporation participated. Garlinghouse wrote on social media after the meeting, “Everyone was in agreement. Rules written for a different era aren’t good enough. Not for consumers. Not for business. Not for innovation.”

Negotiations over the CLARITY Act remain unsettled in Congress. Senate Democrats have raised concerns about potential presidential financial conflicts, anti‑fraud standards, consumer protections, illicit‑finance safeguards and measures to address market manipulation. The bill still requires a Senate vote to advance.

Regulators are also preparing policies on parallel tracks. CFTC Chairman Rostin Behnam instructed agency staff to develop a crypto market regime using the agency’s existing authority, which could provide a federal path for exchanges if legislation stalls. The Securities and Exchange Commission on Aug. 18 proposed a package called Regulation Crypto Assets that would create federal offering routes for certain crypto investment contracts. The SEC proposal includes a one-time $5 million startup exemption and a Tier 2 exemption capped at $75 million over 12 months; issuers would provide narrative disclosures and, at the higher tier, audited financial statements. Exempt offerings would not require state registration. The SEC proposal is subject to a public comment period and would take effect only if the agency adopts a final rule.

Garlinghouse referenced a July 2019 open letter to Congress in which he urged lawmakers to distinguish between types of digital assets and avoid rules that could disadvantage compliant U.S. companies. Ripple executives have continued to lobby for federal standards, and Alderoty has urged lawmakers not to leave consumers operating under the current patchwork of state and federal rules. The CLARITY Act, agency rulemaking and CFTC actions could each shape how U.S. crypto markets are regulated going forward.