US Senate to Feature Ripple CEO in Hearing on Crypto Market Structure

Ripple CEO Brad Garlinghouse and other prominent crypto stakeholders are set to participate as witnesses in an upcoming Senate hearing focusing on the crypto market structure. The hearing aims to address the regulatory uncertainties surrounding cryptocurrencies, with Ripple and XRP serving as prime examples.

John Deaton, an attorney closely following the case, has highlighted the regulatory challenges faced by Ripple and XRP within the evolving crypto landscape. Deaton revealed that Ripple Chairman Chris Larsen engaged in discussions with key regulatory bodies including the Federal Reserve, the SEC, and the U.S. Treasury as far back as 2013. These discussions revolved around XRP and its groundbreaking technology, the XRP Ledger (XRPL).

In addition to Deaton’s insights, it is noteworthy that the Financial Stability Oversight Council (FSOC) released a report in 2019, co-signed by the chairs of the SEC and CFTC, recognizing XRP as a virtual currency. Despite such acknowledgments from various entities, including the FSOC and FinCEN, the SEC has maintained its stance of categorizing XRP as a security.

Deaton emphasized that even after multiple agencies recognized XRP as a currency, the SEC’s classification has not evolved. Notably, in August 2018, Ripple executives, led by Garlinghouse, engaged with the SEC to seek clarity on XRP’s regulatory status. Despite these efforts, the SEC did not disclose any violations of securities laws during the meeting, despite being well-informed about XRP transactions.

This hearing presents a critical opportunity to delve into the complexities of crypto regulation, particularly concerning Ripple and the ongoing XRP saga. With key industry figures like Brad Garlinghouse taking the stand, the Senate hearing is poised to shed light on the challenges and opportunities within the crypto market structure.