Ripple’s CEO pushes for urgent U.S. action as stablecoins skyrocket globally, warning that without clear rules, America risks falling behind in the digital currency race.
Ripple CEO Urges Congress to Act Fast as Stablecoins Erupt Worldwide
Ripple chief executive Brad Garlinghouse raised alarms on social media platform X Thursday, following the U.S. Senate’s failure to advance the Guiding and Establishing National Innovation in U.S. Stablecoins (GENIUS) Act. Garlinghouse, responding shortly after the vote, stated:
Stablecoins are exploding globally for their real-world applications (the sheer amount of recent announcements across crypto, fintech and traditional finance should indicate as such). The sooner that the US can pass workable, clear rules, the faster it reaps the benefits of this technology.
The vote, which many industry leaders had anticipated as a major step toward federal stablecoin regulation, did not pass, prompting disappointment from several lawmakers and policy figures. The GENIUS Act aimed to create a unified regulatory framework for stablecoins. Without federal legislation, stablecoin oversight remains fragmented among state-level regulators, posing challenges for companies seeking clarity and nationwide compliance.
Many in the cryptocurrency industry back the GENIUS Act. Before the vote, Coinbase CEO Brian Armstrong urged U.S. lawmakers to move the legislation forward, calling for bipartisan support to establish stablecoin and market structure regulations before the August recess. He opined: “Congress has a real opportunity this week to advance stablecoin and market structure legislation. We strongly support the Senate starting debate on the GENIUS Act — and we need 60 votes to get there.”
Treasury Secretary Scott Bessent criticized the Senate’s failure to advance the GENIUS Act in a post on social media platform X Thursday, calling it a missed opportunity for U.S. leadership in financial innovation. He emphasized:
This bill represents a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation.
“Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness,” the Treasury Secretary added. “The world is watching while American lawmakers twiddle their thumbs.”
Despite the setback, industry advocates say the global rise of stablecoins highlights strong demand. They continue to urge bipartisan action, citing other nations’ regulatory frameworks as models that promote both innovation and consumer protection.