‘XRP Already Has Clarity,’ Ripple CEO Says Ahead of CLARITY Act Markup

Ripple CEO Brad Garlinghouse has explained why XRP will be fine even without the CLARITY Act, noting that the token has already gained clarity thanks to Judge Analisa Torres’ ruling in the SEC lawsuit. This comes ahead of the CLARITY Act markup, which will further provide regulatory clarity for this token and other crypto commodities.

Ripple CEO Comments On XRP’s Regulatory Status

Speaking with Crypto in America, Garlinghouse reiterated that the token already has clarity as Judge Torres ruled in the SEC’s lawsuit against their firm that XRP is not a security. The Ripple CEO highlighted how they fought a “painful fight” against the first SEC for five years to get clarity for the token.

The Ripple CEO cited this as one reason the token remains in good standing, even without the CLARITY Act. He explained that Ripple was simply supporting the CLARITY Act because it believes it is good for the crypto industry.

Garlinghouse also noted that the crypto bill could benefit Ripple, as it would enable the U.S. to lean into crypto in a way that benefits the industry. Other than that, he suggested they were pushing for the bill’s passage in the industry’s interest, since XRP already has clarity.

The Ripple CEO referenced the Cardano founder Charles Hoskinson’s comments, in which he criticized his and Ripple’s support for the bill. However, Garlinghouse added that he has chosen to ignore those comments.

The CLARITY Act will provide regulatory clarity on crypto assets by clearly classifying which assets are commodities and which are securities. However, it is worth noting that the SEC and CFTC have already provided some form of clarity through the ‘Token Taxonomy’ guidance, which classifies the major crypto assets as commodities.

Garlinghouse Hopeful That The Bill Will Pass

The Ripple CEO expressed optimism that the CLARITY Act will pass. He further remarked that it would be unfortunate for many other stakeholders in the industry if the Senate doesn’t pass the bill into law.

As CoinGape reported, the Senate Banking Committee has May 14 for the CLARITY Act markup to vote on advancing the bill out of the committee. This comes as the crypto bill faces a tight deadline before the Senate heads on a five-week recess in August.

Meanwhile, Garlinghouse also touched on why the SEC’s guidance classifying XRP and other crypto assets as commodities is not sufficient. He revealed that he has spoken with finance executives who have expressed concerns that this guidance could change once Paul Atkins leaves office as the SEC chair.

As such, he declared that the CLARITY Act is needed for the U.S. to remain competitive with other countries in crypto. However, whatever happens, Garlinghouse said, ‘XRP will be okay.’