Ripple Warns Over CLARITY Act
Ripple says rejecting the CLARITY Act would leave regulatory gaps that could lead to another FTX-style failure.
Ripple is urging the U.S. Senate to approve the CLARITY Act, arguing that rejecting the bill would leave critical regulatory gaps that could pave the way for another collapse like FTX.
On July 15, 2026, Lauren Belive, Ripple's Co-Head of Public Policy and Government Relations, wrote on X that voting against the CLARITY Act would not hurt the cryptocurrency industry—it would hurt consumers. She argued that the current lack of clear regulations allows dishonest companies to exploit inconsistencies in existing rules.
Belive emphasized that the legislation has gained bipartisan support and is moving toward a Senate vote. According to her, the bill is designed to provide stronger protection for people investing in digital assets across the United States.
As an example of what can happen without effective oversight, she pointed to the collapse of FTX. The cryptocurrency exchange filed for bankruptcy in November 2022 after its financial ties to Alameda Research were exposed, triggering a wave of customer withdrawals. Founder Sam Bankman-Fried had allegedly transferred billions of dollars in customer funds to Alameda to cover its liabilities. Once it became clear that much of the company's assets were backed by the FTT token, customers rushed to withdraw their funds. FTX was unable to meet the demand and ultimately filed for bankruptcy, leaving an estimated $8 billion shortfall.
Ripple argues that the CLARITY Act would clearly define the responsibilities of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The proposed legislation would also introduce mandatory regulatory oversight for digital tokens before they are launched on the market.
Belive said that while responsible companies already follow high compliance standards, voluntary best practices alone are not enough. In her view, consumers should be able to trust that every participant in the market operates under the same set of rules.
Ripple's Chief Legal Officer, Stuart Alderoty, who also serves as President of the National Cryptocurrency Association, expressed a similar view. He warned that rejecting the CLARITY Act would leave existing regulatory loopholes untouched, allowing misconduct and abuse to continue.
