- Ripple executives said the Clarity Act would establish clear federal oversight for digital asset markets.
- The bill aims to define SEC and CFTC responsibilities while strengthening consumer protections.
- Ripple argued rejecting the legislation would leave existing regulatory gaps and market risks unchanged.
Ripple executives have renewed their support for the Clarity Act as the legislation advances toward a U.S. Senate floor vote. According to Ripple Chief Legal Officer Stuart Alderoty and Global Co-Head of Public Policy and Government Lauren Belive, the bill would establish federal oversight for digital asset markets and address regulatory gaps they say continue to expose consumers.
Ripple Says Bill Would Close Regulatory Gaps
According to Alderoty, rejecting the Clarity Act would leave existing market conditions unchanged. He argued that those conditions could continue allowing bad actors to exploit regulatory gaps.
Meanwhile, Belive said voting against the legislation would leave crypto holders without stronger consumer protections. She added that the bipartisan proposal seeks to establish clear federal rules instead of preserving the current framework.
Belive also pointed to the collapse of FTX, saying the same regulatory gaps that existed then remain unresolved today.
Consumer Protection Takes Center Stage
According to Belive, consumers currently face uncertainty over which regulator oversees digital assets and what standards companies must follow. She said the Clarity Act would define the responsibilities of both the Commodity Futures Trading Commission and the Securities and Exchange Commission.
The proposal would also require regulatory oversight before digital tokens enter the market. Belive argued that those measures would create clearer protections for consumers across the industry.
She added that companies already following responsible practices would continue doing so. However, she said consistent rules would establish the same standards for every market participant.
Senate Vote Approaches
As the legislation moves toward a Senate floor vote, Ripple executives continue urging lawmakers to support the proposal. According to Belive, lawmakers face a choice between establishing federal guardrails or leaving consumers exposed to companies exploiting regulatory uncertainty.
She also argued that opposing the Clarity Act while supporting stronger regulation creates a contradiction because the bill is designed to establish a regulatory framework for digital asset markets. Alderoty echoed that position, stating that rejecting the legislation would preserve the existing conditions that have previously allowed misconduct within the crypto sector.
