Ripple to Senate: Reject CLARITY Act and risk FTX-style losses

On July 15, 2026, Ripple executives urged senators to support the bipartisan CLARITY Act, arguing that a rejection would preserve regulatory gaps and leave crypto users exposed to misconduct. Lauren Belive, Ripple’s global co-head of public policy and government, wrote on X that voting no would amount to leaving holders vulnerable to regulatory arbitrage.

The CLARITY Act, moving toward a full Senate vote, would coordinate authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The bill would assign clear, shared jurisdiction over digital assets and require regulatory oversight before tokens reach the market, according to its text and supporters.

Belive said current federal rules have not kept pace with the growth of U.S. digital asset markets, creating uncertainty over which protections apply and which agency is responsible. She argued that voluntary industry practices cannot guarantee consistent safeguards for all market participants and that defined rules would produce predictable consumer protections.

Stuart Alderoty, Ripple’s chief legal officer and president of the National Cryptocurrency Association, told senators that rejecting the CLARITY Act would preserve what he described as unregulated conditions that allow misconduct. He urged lawmakers who back regulation to support the bill and warned: “A vote against the CLARITY Act is a vote to leave the same unregulated conditions in place to be exploited by bad actors. We’ve seen this movie. Let’s not watch the sequel.”

The FTX collapse in November 2022 is a frequent reference point in debates over crypto oversight. Investigators and court filings show founder Sam Bankman‑Fried directed billions in customer funds to a related trading firm, Alameda Research, and Alameda relied heavily on FTT, FTX’s native token, as illiquid collateral. Those disclosures triggered a surge in withdrawals, FTX halted withdrawals and filed for bankruptcy, and the exchange later recorded an estimated $8 billion shortfall. Bankman‑Fried faced criminal charges related to the collapse.

Supporters of the CLARITY Act say the bill would reduce confusion about regulatory authority and create a more uniform set of requirements for market participants. Opponents have raised concerns about how the measure divides power between the SEC and CFTC and which specific products would fall under each agency’s oversight.

Ripple’s public campaign frames the Senate vote as a choice between setting federal rules for digital assets or retaining the current approach, which company officials say leaves gaps. The company has positioned consumer protection at the center of its appeal to senators as they prepare to vote on the bipartisan framework.