Ripple CEO testifies in 3 major decisions on US digital asset regulation and market structure

The American Senate is poised to make major decisions this week that could redefine US digital asset regulation and market structure, with Ripple CEO Brad Garlinghouse playing a key role in the debate.

On July 9, Garlinghouse testified before the Senate Banking Committee alongside industry leaders, advocating for legislation that balances innovation with consumer protections.

The hearings coincide with President Trump’s push to cement the US as the global crypto hub, adding urgency to discussions on token classification, tax reform, and regulatory jurisdiction.

Ripple shifts from courtroom to committee room for US digital asset regulation and market structure

Once embroiled in a high-stakes legal battle with the SEC, Ripple is now positioning itself as a collaborator in shaping US digital asset regulation and market structure.

Garlinghouse’s testimony emphasized the need for “constructive crypto market structure legislation” in a post on X (formerly Twitter). His appearance follows Ripple’s withdrawal of its SEC case cross-appeal—a move signaling détente with regulators.

“This is about building trust and clarity for the next decade of blockchain innovation,” — Brad Garlinghouse, CEO of Ripple, in Senate testimony.

The hearing, titled “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets,” also featured Summer Mersinger of the Blockchain Association and Chainalysis co-founder Jonathan Levin.

Their input could influence whether tokens like XRP are classified as digital commodities—a decision with far-reaching implications for ETFs and institutional investment.

Commodity status debate could unlock altcoin ETFs

At the heart of the Senate’s debate on the US digital asset regulation and market structure is whether cryptocurrencies such as XRP meet the criteria of traditional commodities. A favorable ruling would accelerate the approval of altcoin ETFs, potentially funneling billions in institutional capital into the market.

“Classifying tokens as commodities isn’t just legal semantics—it’s the key to mainstream adoption,” — Dan Robinson, Head of Research at Paradigm, during the hearing.

The discussion aligns with the House’s upcoming “Crypto Week,” where lawmakers will vote on the GENIUS Act (focused on stablecoin frameworks) and the CLARITY Act (which would shift oversight of most digital assets to the CFTC).

Both bills aim to streamline US digital asset regulation and market structure, reducing reliance on the SEC’s contentious enforcement-first approach.

Tax reforms aim to boost everyday crypto use

While regulatory clarity dominates headlines, the House Ways & Means Committee is quietly advancing proposals to overhaul crypto taxation. A draft bill would exempt capital gains on transactions under $300 (up to $5,000 annually) and defer taxes on staking rewards until sale—a move designed to encourage microtransactions.

“Tax policy shouldn’t stifle innovation or punish everyday users,” — Senator Cynthia Lummis (R-WY), advocating for her standalone crypto tax bill.

The proposals reflect growing bipartisan momentum to modernize US digital asset regulation and market structure, though hurdles remain. Lummis’ bill, still in draft form, seeks public feedback and would need Finance Committee approval to advance.

Who regulates crypto? SEC and CFTC remain at odds

The elephant in the room remains the jurisdictional tug-of-war between the SEC and CFTC. Today’s hearings revisited calls for the CLARITY Act to designate the CFTC as the primary crypto overseer, a move opposed by SEC Chair Gary Gensler.

“The SEC’s ‘regulation by enforcement’ strategy has created chaos. Congress must act,” — Senator Tim Scott (R-SC), during the hearing.

With President Trump backing the GENIUS Act and House votes looming, this week could determine whether the US adopts a cohesive framework for US digital asset regulation and market structure, or prolongs the current patchwork of agency battles.