Ripple CEO and former US officials testify before Congress, key moment for Crypto Assets regulatory framework

As the U.S. Congress considers significant legislation that may reshape the regulatory framework for digital assets, leaders in the Crypto Assets business, policy advocates, and former regulators will testify before the Senate Banking Committee. This hearing is the first disclosure of the U.S. Senate leadership's stance on legislation regarding the structure of the Crypto Assets market since they announced their goal to advance such legislation in October. This is not only a critical moment for the Crypto Assets industry in its quest for clear regulation, but it will also reveal how potential conflicts of interest may affect the legislative process.

I. Senate Hearing: Key Conversations on Crypto Assets Regulation

Next Wednesday, the U.S. Senate Banking Committee plans to hear testimonies from several senior figures to discuss the future of the digital market. This includes:

Ripple CEO Brad Garlinghouse: As a leader in the Crypto Assets industry, his testimony will represent the industry's demands and perspectives on regulation.

Former Commodity Futures Trading Commission (CFTC) Commissioner and CEO of the Blockchain Association Summer Mersinger: In her prepared testimony, she stated, "We are at a critical moment. The question is no longer whether we should regulate this industry, but how we should regulate it. We can either continue down this uncertain path that leads to the U.S. losing its leadership and pushing innovation overseas, or we can establish a reasonable, bipartisan regulatory framework that solidifies the U.S. position as an innovative financial center for decades to come."

Former CFTC Chairman Timothy Massad: As a former head of a regulatory agency, he will provide professional insights from a regulatory perspective.

Chainalysis CEO Jonathan Levin: He will provide analysis from the perspective of on-chain data and compliance.

The holding of this hearing coincides with the House Republican leadership announcing plans to consider three cryptocurrency-related bills starting next Monday, which is part of a legislative initiative known as "Crypto Week." These include the GENIUS Act, which passed the Senate in June, and the CLARITY Act, which is currently under consideration in the House. Additionally, the House will also review a bill aimed at preventing the development of a Central Bank Digital Currency (CBDC) in the United States.

2. Potential Conflicts of Interest: Trump's Relationship with Crypto Assets

However, potential conflicts of interest may still affect the legislative process. This hearing is also a rare appearance by Garlinghouse in front of American lawmakers, as Ripple is increasingly involved in policy discussions in Washington. Notably, Ripple donated $5 million worth of XRP to President Donald Trump's inaugural fund, and Garlinghouse also participated in a cryptocurrency conference held at the White House this March.

Richard Painter, the White House ethics advisor during President George W. Bush's administration, will also testify, indicating that lawmakers may address conflicts of interest related to Trump's role in the Crypto Assets industry.

Earlier this year, Trump launched his own memecoin on the eve of his inauguration. In addition, he and his family hold a significant stake in the crypto assets company World Liberty Financial, particularly in the stablecoin project USD1. In May, when the Senate voted on the GENIUS Act for the first time, some Democratic senators withdrew their support for the bill due to concerns about Trump's relationship with crypto assets companies. Although the bill later passed with support from some Democrats, some legislators stated that they would continue to monitor Trump's influence in the industry and take action.

Conclusion:

The Senate hearing is a critical juncture in the United States' Crypto Assets regulatory process. The testimonies from industry leaders, policy advocates, and former regulators will provide important references for lawmakers in formulating a reasonable regulatory framework. However, the potential conflict of interest between Trump and the Crypto Assets industry adds complexity to the legislative process. Whether the United States can establish a bipartisan regulatory framework that promotes innovation while protecting investors will have profound implications for the global Crypto Assets market.