Ripple CEO Brad Garlinghouse also predicted the U.S. will likely become the crypto capital of the world as Washington pushes harder to regulate digital assets, as lawmakers draft legislation to establish the needed clarity the industry craves.
Contents
- Why Brad Garlinghouse Says the US Crypto Capital Is “Within Reach”
- What Is the CLARITY Act and Why Does It Matter for Crypto?
- CLARITY Act September 15 Senate Vote: What Happens Next?
- Could the CLARITY Act Make America the World’s Crypto Capital?
- What the CLARITY Act Could Mean for Bitcoin, XRP and Altcoins
- XRP and Ripple: Why Garlinghouse Has So Much at Stake
- Could the CLARITY Act Change Crypto Forever?
- FAQ
Why Brad Garlinghouse Says the US Crypto Capital Is “Within Reach”
For Garlinghouse, this goal is less about symbolism and more about passing a federal regulatory framework in the United States for digital assets and crypto companies.
What Garlinghouse Said About America’s Crypto Future
On September 3, Garlinghouse said making America the global center of crypto was “within reach” and urged policymakers to “finish the job.” The Brad Garlinghouse crypto capital message followed discussions involving regulators and executives from crypto, finance and technology.
According to his Brad Garlinghouse US crypto capital thesis, such legislation would also provide the legal certainty that the domestic crypto industry has been seeking for years.
Read More: SEC Chair Paul Atkins Sees CLARITY Act Advancing as Crucial Senate Vote Nears
The White House Crypto Push Behind Garlinghouse’s Statement
Garlinghouse made the comments after an August 19 White House meeting between digital asset and traditional finance executives and federal government leaders to discuss digital asset legislation, tokenization, capital formation and U.S. technological competitiveness.
The meeting is part of a cross-administration effort on crypto that includes the passage of federal stablecoin legislation through the GENIUS Act, though it has yet to pass market-structure legislation.
| Key Point | What It Means |
| Garlinghouse’s position | Ripple CEO Brad Garlinghouse says US leadership in crypto is “within reach.” |
| Main policy goal | Establish a durable federal framework for digital assets and crypto companies. |
| White House focus | Digital-asset legislation, tokenization, capital formation and US competitiveness. |
| CLARITY Act’s role | Clarify how securities and commodities rules apply to digital assets. |
| SEC and CFTC | Establish clearer jurisdictional boundaries between the two regulators. |
| Potential industry effect | Greater regulatory certainty for crypto companies operating and investing in the US. |
| Key challenge | Congress must resolve disagreements over investor protection, national security and ethics. |
Why the CLARITY Act Is the Key to US Crypto Leadership
The CLARITY Act 2026 seeks to address the central regulatory question of these markets of which of the securities and commodities laws apply. According to materials from the Senate Banking Committee, the policy would clarify SEC and CFTC jurisdiction and establish tailored operational standards.
Supporters of the CLARITY Act crypto framework argue this legislation can keep investment and innovation in America, while critics such as Senator Elizabeth Warren argue the legislation still lacks investor protection, national security, and ethics.
The CLARITY Act, therefore, is at the crux of Garlinghouse’s argument: America’s crypto ambitions boil down to Congress’ ability to turn policy momentum into longer-term legislation.
What Is the CLARITY Act and Why Does It Matter for Crypto?
The CLARITY Act is a federal digital-asset market structure law intended to clarify the regulatory framework for crypto markets in the United States. In 2025, the House passed H.R. 3633. In May 2026, a modified version of the CLARITY Act passed the United States Senate Committee on Banking, Housing, and Urban Affairs 15-9.
It is especially notable for defining the regulatory boundary that has been debated for years, and for adopting rules for digital commodities, investment contracts, trading venues and intermediaries, and customer protections.
How the CLARITY Act Would Reshape US Crypto Regulation
The legislation is also notable because it would move the US crypto regulation towards a statutory market structure approach as opposed to an agency-based approach.
Senate Banking Committee materials describe registration, disclosure, customer asset protections, anti-fraud safeguards, and illicit-finance controls in the legislation.
The distinction remains despite the 2026 guidance from regulators, and the view of SEC chairman Paul Atkins in August that durable rules require congressional legislation that is not easily undone by a future regulator.
SEC vs. CFTC: Who Would Regulate Digital Assets?
The bill would divide crypto regulation between the SEC and the CFTC, rather than giving one regulator jurisdiction over the entire cryptocurrency market. The House committee report accompanying the bill indicates that the CFTC would have jurisdiction over digital commodities, and that the SEC would retain jurisdiction over securities and investment contracts involving digital commodities.
Meanwhile, the Senate Agriculture Committee also advanced its own bill building on the earlier CLARITY legislation which passed in the House, giving the CFTC jurisdiction over digital commodities, one of the primary components of the then emerging US crypto regulation 2026 framework.
Which Cryptocurrencies Could Benefit From Clearer Rules?
The statute does not provide a simple list of which cryptocurrencies are winners; instead, regulatory consequences would turn on how an asset and its transactions would fit into statutory categories.
The SEC’s March 2026 interpretation already identifies differences between digital commodities, stablecoins, digital collectibles, digital tools, and digital securities.
However, to the extent the CLARITY Act results in a clearer designation of any applicable digital assets such as XRP▲$1.13, Bitcoin, Ethereum, or any other cryptocurrency or digital asset, such designation still does not guarantee that there will be any impact on the respective market.
How the Bill Could Change the Rules for Crypto Companies
For crypto companies, however, the CLARITY Act impact on crypto would go beyond the treatment of tokens, subjecting digital asset intermediaries to regulatory obligations and imposing customer protections and rules on registered market participants.
The broader regulatory environment is changing, with the SEC proposing Regulation Crypto Assets that sets out tailored exemptions for certain crypto-related investment contracts, as well as disclosure obligations for issuers.
The agency viewed these measures as a supplement to the permanent market-structure framework Congress was working on.
CLARITY Act September 15 Senate Vote: What Happens Next?
The next test of the timing of the CLARITY Act September 15 window is now on the books, as Senate records show that the motion for cloture on the motion to proceed to H.R. 3633 ripens at 2:15 p.m. September 15. However, a cloture vote is not a substantive vote on the bill, but rather a procedural vote as to whether the Senate will take up the bill.
If cloture succeeds, senators can begin debate on the bill and amendments. According to Reuters, clearing the procedural hurdle in September would be an important step, but not the end of the legislative process.
Why the Senate Vote Requires 60 Votes
Because Senate Majority Leader John Thune filed cloture on the motion to proceed, the September 15 test requires 60 votes.
Pursuant to the Senate rule of cloture, three-fifths of the Senate, properly chosen and sworn — 60 in the absence of vacancies — are required to close most debate on issues or overcome a filibuster. A usual number of Senate votes, including bipartisan support, would be required for the CLARITY Act Senate vote.
That threshold proved problematic, and The Block reported, in late July, that there were still not enough votes for cloture, with reticence from both parties on the issue.
The Biggest Obstacles to Passing the CLARITY Act
The most intractable issues are around ethics, with several Democrats wanting to increase the restrictions on conflicts of interest for legislators and crypto companies. The ethics provisions in the current draft have failed to assuage key Democrats.
There are also disagreements about anti-money laundering and other law enforcement provisions, consumer protection, and stablecoin yield. Banks have pushed back against more stringent control over crypto companies offering yield that would compete with traditional bank deposits, complicating negotiations of the CLARITY Act 2026.
Read More: CLARITY Act Crypto Regulation Impact: How the September Vote Could Reshape the U.S. Crypto Market
What Happens if the Senate Vote Fails?
However, if cloture is not invoked on September 15, then this motion to proceed will not clear that cloture vote. The bill will not die. Proponents would then have to find another way to get it a vote on the floor or build support for another cloture attempt.
The timing would then be particularly difficult, because Reuters reported that the Senate has limited legislative time before the November midterm elections, and possibly another delay of the CLARITY Act crypto framework.
Could the CLARITY Act Be Delayed Until 2027 or Later?
Yes. A delay into 2027 is a possibility but not a certainty. According to Reuters, the bill’s prospects were already dim this year because of partisan divides and a short calendar before the election.
If a restarted 2027 occurred under a different political situation after the midterm elections, failing to meet the September deadline would not kill the legislation entirely, but would make its prospects much less certain, requiring Congress to finalize outstanding policy details during the next Congress instead of 2027.
| Key Detail | What It Means |
| Vote date | September 15, 2026 |
| What the Senate votes on | Cloture on the motion to proceed to H.R. 3633 |
| Votes required | 60 votes under the Senate cloture threshold |
| If cloture succeeds | The Senate can move forward with consideration, debate and amendments |
| If cloture fails | The bill does not automatically die; supporters can seek another path or later vote |
| Main obstacles | Ethics rules, AML provisions, consumer protection and stablecoin yield |
| Bipartisan support | Needed to reach the 60-vote procedural threshold |
| Risk of further delay | Failure in September could push negotiations into 2027 or later |
Could the CLARITY Act Make America the World’s Crypto Capital?
While the CLARITY Act could help strengthen the US position as a hub for digital assets, legislative clarity alone won’t keep the US as the dominant hub for the digital asset industry. As the White House digital-assets report states, a market structure fit for purpose is important to keep blockchain development, investment, and entrepreneurship in the US.
The administration has repeatedly stated its intent to make the United States the crypto capital of the world and has taken steps to integrate digital assets into the economy and financial system.
Why Regulatory Clarity Could Bring Crypto Companies Back to the US
Regulatory durability is a pillar of the case for legislation. SEC and CFTC have adopted crypto-friendly policies that future administrations could undo. Thus, companies would have more certainty regarding long-term investment and operations in the United States.
While a predictable US crypto regulation framework may make US growth for crypto businesses more attractive, it will not guarantee that foreign entities will relocate to the US.
The US vs. Europe: Who Has the More Attractive Crypto Rules?
Europe is likewise ahead, with the EU’s MiCA regulation giving crypto firms a unified jurisdiction, while major exchanges such as Binance work towards MiCA licensing in the European Union.
The US has adopted a hybrid approach of legislation and SEC and CFTC rulemaking. The final rules, compliance costs, and regulatory consistency will determine the attractiveness of this model.
Could the US Overtake Other Global Crypto Hubs?
The administration believes strong regulation can help the US maintain its leadership in the space, proposing initiatives like the Strategic Bitcoin Reserve, the GENIUS Act, and market-structure reform.
Competition extends beyond Europe to established and emerging Asian markets. The CLARITY Act impact on crypto industry will depend on its final terms and implementation. Passage is no guarantee that the United States will dominate.
What “Crypto Capital of the World” Would Actually Mean
It is a policy objective, not an official economic classification. The White House says it needs to be a leader in blockchain technology, digital asset markets and financial technology with clear regulations and domestic investment.
In practice, a successful US crypto capital strategy means providing that digital-asset companies have predictable rules to build, raise capital and provide compliant services. Whether CLARITY achieves that goal will depend on Congress and the judgment of federal regulators.
What the CLARITY Act Could Mean for Bitcoin, XRP and Altcoins
The CLARITY Act could alleviate one of the longest-standing risks for US crypto-assets: the uncertainty about whether a particular crypto-asset or transaction should fall under the definition of a security or commodity.
For example, the SEC’s proposed 2026 framework identifies Bitcoin, Ether, XRP, Solana, and other major tokens as digital commodities, not securities.
Legislation approved by Congress, however, would have written many of these market-structure rules into law. SEC Chairman Paul Atkins argued that legislation would have provided the stability needed to ensure that any future rules could not be reversed.
Read More: Ripple Lawyer Says CLARITY Act Could Boost U.S. Jobs as Crucial Senate Vote Nears
Bitcoin and the New US Regulatory Framework
Bitcoin’s position is a fairly strong one in that the SEC has determined it a digital commodity. Key changes likely will more affect the clarity around federal market and intermediary rules than the BTC▲$62,630.00 definition itself.
Moreover, Bitcoin also reacts to ETF flows, inflation expectations, monetary policy, and other risk-reward factors in its price movements.
Why XRP Could Be One of the Biggest Beneficiaries
The XRP case is more closely linked to regulatory uncertainty in the US, as the SEC’s long-running litigation against Ripple is active (the SEC recognizes XRP as a digital commodity). The direct question is whether Congress can resolve the classification and trading standards in a legally binding, permanent manner through the XRP CLARITY Act.
XRP rallied 5% when the Senate Banking Committee passed a market-structure bill for crypto in May, beating Bitcoin and Ether, but that outcome is not guaranteed for future measures.
What CLARITY Could Mean for Ethereum and Other Altcoins
Ethereum has a clearer regulatory status, with the SEC judging Ether a digital commodity, alongside SOL▲$82.41, ADA▲$0.1791, AVAX▲$6.98, LINK▲$7.97 and DOGE▲$0.0778.
That does not mean that every non-security crypto asset would be treated the same because a non-security crypto asset can become an investment contract based on how it is offered or sold.
The broader CLARITY Act impact on crypto would therefore involve more predictable classification and oversight rather than a blanket exemption from securities laws.
Could Regulatory Clarity Trigger a New Crypto Bull Market?
Legislative advances are often followed by price increases: e.g., when the Senate Committee on Banking, Housing, and Urban Affairs successfully reported the bill in May, Bitcoin, XRP and other top crypto assets rose in value.
Passage alone would not lead to a bull market, as crypto prices remain sensitive to ETF flows, monetary conditions, institutional demand and risk appetite. Regulatory clarity could help remove one source of uncertainty, but the broader outlook is determined by these larger factors.
| Crypto Asset | Potential Regulatory Impact |
| Bitcoin (BTC) | Already treated as a digital commodity; clearer rules could primarily affect markets and intermediaries |
| XRP | Greater statutory clarity could reduce uncertainty surrounding classification and trading rules |
| Ethereum (ETH▲$1,761.17) | Ether is treated as a digital commodity under the SEC’s 2026 framework |
| SOL, ADA, AVAX, LINK, DOGE | Cited among digital commodities, although treatment can still depend on transactions and offerings |
| Crypto market overall | Clearer classifications and oversight could reduce regulatory uncertainty |
| Bull-market potential | Regulatory clarity may support sentiment, but cannot guarantee higher crypto prices |
| Other price drivers | ETF flows, monetary policy, institutional demand, liquidity and broader risk appetite |
XRP and Ripple: Why Garlinghouse Has So Much at Stake
Brad Garlinghouse supports the Ripple CLARITY Act agenda. Ripple’s US strategy for many years was determined by regulatory lawsuits. Ripple’s SEC lawsuit was resolved in 2025, but the final judgment remains in place. Ripple was fined $125 million and enjoined from unregistered institutional sales of XRP.
Ripple may also hope that such congressional market-structure legislation could provide the broad statutory regime for digital assets and the transactions in which they’re used that the lawsuit could not.
Ripple’s Long-Running Fight With the SEC
In December 2020, the SEC filed suit against Ripple, Garlinghouse, and co-founder Chris Larsen. Judge Analisa Torres ruled in 2023 that Ripple’s institutional XRP sales constituted unregistered securities offerings, while programmatic exchange sales were not securities offerings.
The dispute was formally concluded in August 2025 when the SEC and Ripple jointly abandoned their respective appeals, leaving the final judgment of the district court intact without vacating the case or all its precedential effects.
How CLARITY Could Change Ripple’s Regulatory Position
Ripple CEO CLARITY Act support is about more than just a Ripple court victory, as the federal market-structure law being discussed, if passed, would create clearer demarcations between digital commodities and securities, and which regulators oversee which activities.
Even if CLARITY passed, it wouldn’t be enough to overturn Ripple’s judgment, and since the penalty and injunction were ordered by the court, it wouldn’t dismiss Ripple’s prior SEC liabilities.
Why XRP Traders Are Watching the September 15 Vote
September 15 will see the next full push by Congress, with the cloture motion on the motion to proceed to H.R. 3633 set to ripen at 2:15 p.m. on the Senate calendar; however, this cloture vote would not be final passage.
CoinDesk reported that XRP initially responded bullishly to the CLARITY Act XRP linkage with a 5% gain when the Senate Banking Committee voted to advance the bill in May, but then led the major-crypto sell-off when the Senate further delayed the bill’s consideration until September.
That history might help to explain traders’ interest in the vote, but does not establish that a successful cloture will push XRP higher or a failed cloture lower.
Is the CLARITY Act Already Priced Into XRP?
It is difficult to verify if the market accurately priced in CLARITY into XRP. CoinDesk reported that XRP had gained approximately 40% from August lows to new highs on September 1, as mixed futures positioning suggested that while leveraged funds were net short on CME, dealers and asset managers were net long.
This supports evidence for mixed positioning and regulatory developments being a driver for XRP. Price movements in the cryptocurrency market are not only driven by trading activities in the market but also by the positioning of institutions and expectations of investors.
Could the CLARITY Act Change Crypto Forever?
The CLARITY Act could lead to federal laws on token classification, jurisdiction, and rules for intermediaries — by the SEC and the CFTC. Securities and Exchange Commission Chairman Paul Atkins said legislation is “indispensable” for durable rules.
Its ultimate importance will depend on whether Congress passes it, what amendments survive, and how regulators implement its provisions.
The Bull Case for US Crypto Regulation
Supporters of clearer US crypto regulations 2026 say it would reduce legal ambiguity without sacrificing investor protections; Senate Banking Committee materials assert it would clarify SEC and CFTC jurisdiction, establish tailored disclosure requirements and prevent market manipulation.
The economic argument includes compliance regulations that would stay for crypto businesses and investments in the U.S., the Senate Banking Committee passing the measure by a 15-9 margin in May, and some bipartisan support for the legislation.
Read More: Trump Pushes CLARITY Act as Bitcoin Surges: Is Crypto Finally Getting the Rules It Needs?
The Biggest Risks if Congress Fails to Act
Even without legislation, regulators can continue to develop crypto rules under the authority they already have. Atkins has warned that agency-level rules could be undone without supporting federal law.
Senate Banking Committee Democrats have warned that delay on some provisions could harm investor protections, anti-money-laundering safeguards and national-security enforcement.
What Investors Should Watch Before the Senate Vote
The next step is a procedural September 15 vote. According to Reuters, there are remaining disagreements regarding ethics provisions, anti-money-laundering provisions and provisions benefiting community banks in the bill.
Investors should not mistake the nascent legislative momentum as a market confirmation. The CLARITY Act Senate vote is an important catalyst, but even a successful procedural vote would leave further debate and legislative steps ahead.
US Crypto Capital: What Comes Next for the Market?
Administration officials and the Republican leaders of the Senate Banking Committee have called the measure part of their effort to make America the crypto capital of the world. Trump reiterated his call for Congress to pass the bill during a joint event at the White House in August with crypto executives and federal regulators.
The next step on the US crypto capital agenda is political: whether there are sufficient votes in the US Senate on September 15, and in a final step for final passage and implementation to become US law.
FAQ
What Is the CLARITY Act and Why Is It Important for Crypto?
The CLARITY Act is a proposed market-structure bill in the United States that outlines federal oversight of digital assets, including duties for crypto intermediaries and marketplaces.
When Is the Next Senate Vote on the CLARITY Act?
The next major procedural vote is scheduled for September 15, 2026, when senators will be asked to vote on cloture on the motion to proceed, instead of the bill’s final passage.
Will the CLARITY Act Make XRP a Commodity?
Though current guidance from the SEC describes XRP as a digital commodity — rather than a security — the bill would provide more permanent standards for how digital assets and transactions are to be regulated.
How Could the CLARITY Act Affect Bitcoin and Other Cryptocurrencies?
More clarity for digital-asset markets and intermediaries may reduce regulatory risks, but legislation would not necessarily have an impact on cryptocurrencies’ prices, which are affected by liquidity, institutional demand, and macroeconomic conditions.
What Happens if the CLARITY Act Does Not Pass the Senate?
Such a procedural setback would not kill the bill but rather delay it considerably, as legislators negotiate possible changes with each other or move on to market-structure legislation later in the session.
