Ripple CEO Says Crypto Sector Can Grow Beyond CLARITY Act

Brad Garlinghouse, the CEO of Ripple, has stated that the future of cryptocurrencies is not contingent on whether or not the CLARITY Act becomes law. Despite his support of federal market structure legislation for cryptocurrencies, he says that “technological outperformance” can ensure the continued growth of cryptocurrencies in the face of Congress' failure to move the bill forward. “When you have a technology that's better, faster, stronger… that usually wins,” said Garlinghouse, as per Nate Geraci, who reported at the Kansas City digital asset conference on September 15.

Ripple Maintains Its Position on Federal Crypto Market Rules

According to the official listing of September 15 by the Economic Club of Kansas City, Garlinghouse was scheduled for a discussion on the topic of "Disruption of Digital Assets," which dealt with the subject of global payments, adoption, and the development of digital finance. At the Kansas City event, Garlinghouse argued that the traditional infrastructure of finance was not able to keep up with the new technology. Comments made by Garlinghouse presented crypto adoption as a technology question that extends beyond the outcome of any one US bill. 

Geraci explained that the head of Ripple asked why the US would take a risk and give an upper hand to other nations when there were many G20 nations that had crypto regulations in place. The comments from Garlinghouse were not made after any findings by US regulators. They were merely his perception about the competitiveness of the country. This take by Garlinghouse comes after he made several calls for Congress to advance the Clarity Act. 

Ripple delivered a response following the Senate vote, which makes it clear that the results have not altered the company's opinion about the regulation of XRP. In the post-vote statement issued by Ripple on September 15, the company claimed that it has paid over $150 million (roughly Rs. 1,440 crore) while being involved in the litigation process with the SEC, and it cited its earlier legal case and federal regulatory guidance regarding the XRP status.

The markets fell, as investors were analysing the failed procedural vote, which led to higher losses in leveraged crypto positions. There have been $571 million (approximately Rs. 5,479 crore) in liquidations observed on exchanges, which is the highest number of liquidations since August 22, according to CoinGlass. The shorts, or bearish positions, made up only around $100 million (roughly Rs. 960 crore) worth of the loss. The Bitcoin and Ether long positions suffered the most, with roughly $190 million (roughly Rs. 1,824 crore) in each getting liquidated.