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Home»Taxes & Regulation»Ripple CEO warns of US falling behind without stablecoin regulation
Taxes & Regulation

Ripple CEO warns of US falling behind without stablecoin regulation

May 9, 2025No Comments2 Mins Read
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Ripple CEO Brad Garlinghouse Urges US Lawmakers to Establish Clear Regulation for Stablecoins

Brad Garlinghouse, the CEO of Ripple, recently made a plea to US lawmakers to expedite the process of creating a regulatory framework for stablecoins. In a statement shared on the social media platform X (formerly Twitter) on May 9, Garlinghouse highlighted the increasing global adoption of stablecoins and cautioned that the US could fall behind in the competitive landscape without swift action.

Garlinghouse emphasized the rapid integration of stablecoins into global markets, attributing their widespread acceptance to practical use cases. He expressed concerns that delays in implementing clear regulations could impede the country’s ability to fully leverage the technology’s potential.

This call to action comes in the wake of the US Senate’s decision to reject the GENIUS Act, a proposed bill aimed at establishing a federal approach to regulating stablecoins. The vote, which took place on May 8 and resulted in a 49-48 outcome against advancing the bill, has stalled its progress. However, a revised version is anticipated to be introduced in the near future.

US Treasury Secretary Scott Bessent criticized the Senate’s decision, characterizing it as a missed opportunity. He underscored the potential of the GENIUS Act to bolster US influence and uphold the dollar’s dominance amidst a shifting financial landscape. Bessent stated, “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.”

Stablecoin adoption is on the rise, with transaction volumes hitting a record high of $1.82 trillion in March 2025, according to data from a16z crypto. Unlike volatile digital assets such as Bitcoin, stablecoins are pegged to fiat currencies like the US dollar, offering stability and utility in payments and cross-border transactions.

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Traditional financial institutions are beginning to take notice of the significance of stablecoins. Companies like Stripe and Meta have recently displayed growing interest in the stablecoin sector, signaling its increasing importance within the broader financial ecosystem.

As the debate around stablecoin regulation continues, the need for a clear and comprehensive framework is becoming increasingly urgent. Garlinghouse’s advocacy for swift action underscores the importance of establishing guidelines that can support innovation while ensuring stability and security within the digital economy.

CEO falling Regulation Ripple Stablecoin warns
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