The push for comprehensive U.S. cryptocurrency regulation is intensifying, with Ripple CEO Brad Garlinghouse and the Trump administration advocating for the swift passage of a market structure bill, even if it's not perfect. Garlinghouse emphasized that regulatory clarity is urgently needed, stating, "Let's not let perfect be the enemy of good." He argued that a clear framework is essential for innovation to grow and that years of uncertainty have driven crypto companies offshore.
U.S. President Donald Trump echoed this sentiment, expressing hope to sign sweeping cryptocurrency legislation "very soon" and reaffirming his view that the U.S. should be the "crypto capital of the world." The legislative effort follows a tumultuous period where the Senate Banking Committee postponed a key hearing and crypto exchange Coinbase withdrew its support for the bill.
A major point of contention revolves around stablecoins, specifically whether users should be allowed to earn yield on them. Banking groups warn that allowing yield could pull deposits away from traditional banks, harming community banks. In contrast, the crypto industry argues stablecoins are primarily for payments and transfers, not savings, and accuses banks of trying to stifle competition. This debate centers on the GENIUS stablecoin law, which bars issuers from paying direct interest but does not prohibit third-party platforms like Coinbase from offering rewards.
Patrick Witt, Executive Director of the President's Council of Advisors for Digital Assets, warned that the industry must act before losing political momentum, noting that assuming crypto can operate forever without clear rules is unrealistic. "There will be a crypto market structure bill," Witt said, calling it a matter of "when, not if." He cautioned that missing the current window could lead to harsher regulation later, especially after a future financial crisis.
The proposed Clarity Act aims to establish the "rules of the road" for digital assets, covering tokens, stablecoins, and trading platforms. Supporters believe clear rules would give large institutional investors the confidence to enter the market at scale, potentially unlocking the next phase of crypto growth by boosting liquidity and long-term stability. The Senate Agriculture Committee is scheduled to hold a hearing to amend and vote on its version of the bill on January 27, with legislative text expected imminently.
