“We want to make sure we don’t have another Gary Gensler moment, where we try to weaponize policy in a way that is political, rather than what’s good for the United States. That’s why we need these things codified into law.” Garlinghouse made the remarks as the crypto market continues to experience volatility and significant regulatory developments are underway in the United States. Context: The End of the Gensler Era? During Gary Gensler’s time as Chair of the Securities and Exchange Commission (SEC), the crypto industry faced a wave of lawsuits and regulatory uncertainty. Numerous companies, including Ripple itself, endured lengthy and costly legal battles, accused of selling unregistered securities. This “enforcement-first” approach was widely criticized by the sector, which accused it of stifling innovation and pushing some companies to relocate abroad. With the change in administration and a more crypto-friendly stance influenced by Donald Trump, the industry hopes to turn the page. However, Garlinghouse insists that current progress is not yet sufficient if it remains reversible. Call to Codify Rules into Law The Ripple executive welcomed recent joint initiatives between the SEC and the CFTC, which have classified several digital assets (including Bitcoin, Ether, Solana, and potentially XRP in certain contexts) as commodities rather than securities. He also views the CLARITY Act positively, as it aims to establish a clear regulatory framework for crypto markets. However, he believes these advances risk remaining fragile unless they are codified into law by Congress. Without solid legislative anchoring, a future president or new SEC Chair could easily revert to more hostile practices. Garlinghouse emphasized that regulation must serve the national interest: maintaining U.S. competitiveness in digital finance against Europe, Asia, and the Middle East, where several jurisdictions are moving faster. Ripple Poised for Strong Growth Despite Market Volatility Despite a generally cautious crypto market in 2026, Garlinghouse expressed optimism about Ripple’s performance. He stated that the company is on track to record a record first quarter in 2026, driven by growth in cross-border payments via RippleNet and increasing adoption of stablecoins (including Ripple’s own RLUSD). He also noted that stablecoins could represent the “ChatGPT moment” for traditional businesses, enabling them to quickly integrate blockchain into their operations. A Clear Message for Washington Garlinghouse’s message is twofold:

Optimistic: The United States is at a historic turning point to become the “crypto capital of the world.” Vigilant: Political partisanship or special interests (traditional banks, etc.) must not be allowed to “weaponize” regulation at the expense of innovation and American competitiveness.

As discussions on the CLARITY Act continue in the Senate, Garlinghouse’s statements serve as a reminder that the crypto community expects not only promises, but durable legal protections.