Ripple CEO Flags Imminent Deadline as Senate Crypto Bill Faces Collapse Risk

Senate delays and election pressure threaten crypto legislation, leaving U.S. digital asset rules uncertain.

Momentum around U.S. crypto legislation is reaching a critical point. Lawmakers face a narrow window to advance a bill that could define how digital assets are regulated. Delays in the Senate now threaten to stall progress entirely. Industry leaders warn that political timing may soon close the door on meaningful action.

Garlinghouse Signals Declining Odds for Crypto Bill if Senate Delays Continue

Brad Garlinghouse, Ripple’s chief executive, said the next two weeks could determine whether broader cryptocurrency legislation moves forward. Speaking at Consensus Miami hosted by CoinDesk, he pointed to an upcoming hearing by the Senate Banking Committee as a decisive moment.

Garlinghouse warned that failure to hold a markup session would sharply reduce the chances of passing a bill. He stressed that once the timeline overlaps with midterm election campaigning, political priorities shift quickly. Lawmakers often focus on competitive races rather than complex policy debates.

“If it doesn’t happen soon, the probability drops significantly,” he said. “Once midterms dominate attention, crypto becomes a tougher issue to advance.”

Efforts to pass federal crypto legislation have been building for months. Lawmakers aim to establish clear rules for the industry, including dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Such clarity would mark the first comprehensive regulatory framework for digital assets in the United States.

Midterm Pressure Puts U.S. Digital Asset Legislation at Risk of Collapse

The House of Representatives passed its version of the bill, known as the Clarity Act, last year. Senate efforts, however, have faced delays and disagreements. Both the Senate Agriculture Committee and the Senate Banking Committee must approve their versions before the legislation can advance.

The agriculture panel has already moved its version forward. Attention now shifts to the banking committee, where disagreements over stablecoin rewards have slowed progress. A recent compromise between Angela Alsobrooks and Thom Tillis may help resolve that issue. Their agreement could clear the path for a markup session in the coming weeks.

Despite that progress, additional concerns remain. Some lawmakers have raised questions about potential conflicts of interest tied to Donald Trump and crypto-related ventures. Others continue to focus on risks linked to illicit finance and compliance gaps within the industry.

Time pressure is increasing as the November midterm elections approach. Campaign activity tends to dominate legislative schedules, leaving less room for detailed policy work. Garlinghouse suggested that if the bill misses this window, the chances of revival after elections would be even lower.

In the absence of congressional action, regulators have taken steps to clarify their positions. Agencies like the SEC and CFTC have issued guidance and introduced frameworks such as token classification systems. These efforts indicate a shift toward recognizing that many cryptocurrencies may not fall under securities laws.

Crypto Rules in Flux as Garlinghouse Calls for Lasting Legal Framework

Regulatory approaches have varied across administrations. Under former SEC Chair Gary Gensler, the agency argued that most cryptocurrencies qualified as securities and pursued enforcement actions against major firms. Current leadership under Paul Atkins reflects a more flexible stance.

Garlinghouse argued that legislation would provide stability that regulatory guidance alone cannot offer. Agency positions can change with new administrations, while laws create lasting standards.

Ripple’s own legal battle illustrates the need for clarity. In 2020, the SEC accused the company of raising $1.3 billion through unregistered sales of XRP. The case, initially filed during Jay Clayton’s tenure, continued for years.

A federal judge later ruled that XRP itself is not inherently a security. However, certain institutional sales did fall under securities laws. The mixed outcome provided partial clarity but left broader questions unresolved.

Garlinghouse said that while Ripple gained some legal certainty, the wider industry still lacks clear rules. He argued that legislation like the Clarity Act is needed to define how digital assets are classified consistently.

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