Ripple CEO to Testify Before Senate Banking Committee on September 9

Today, July 9th, is a rare moment when Washington's crypto narrative aligns, as part of the push to make the United States the world's crypto capital.

Ripple CEO Brad Garlinghouse is heading to the Capitol to attend the Senate Banking Committee. Taxes are quietly drawing attention to crypto in another part of the Capitol.

Brad Garlinghouse Testimony Scheduled... Senate Focuses on Crypto Market Structure

The hearing "From Wall Street to Web3: Building the Digital Asset Market of Tomorrow" will be attended by key industry figures. Today's conversation is expected to influence how the United States will shape the next steps of digital asset regulation.

The Senate Financial Institutions and Digital Assets Subcommittee is hosting the hearing. This is part of an accelerated effort to legislate crypto oversight.

Ripple's CEO Brad Garlinghouse will attend alongside Summer Mercier of the Blockchain Association. Dan Robinson from Paradigm and Jonathan Levin, co-founder of Chainalysis, will also be present.

In a post on X(Twitter), Garlinghouse urged a "constructive crypto market structure bill" that balances innovation and consumer protection.

His appearance highlights Ripple's repositioning as a regulatory partner, after being previously trapped in a long-term legal dispute with the SEC.

Today's testimony marks a transition from the courtroom to the committee room. This is expected after Ripple withdrew its cross-appeal in the long-standing SEC case, with the institution likely to follow suit.

Senate to Discuss Token Commodity Status

The U.S. Senate will discuss whether tokens like XRP can be recognized as digital commodities under U.S. law. Legislators will investigate the fundamental characteristics of these tokens and more closely examine their similarities to traditional commodities.

The Senate will also assess whether these tokens meet the necessary criteria for such classification. If the Senate recognizes tokens as digital commodities, it could open the floodgates to a new wave of financial products.

The general consensus is that this could be crucial for altcoin ETF approval. Such developments would allow investors to directly expose themselves to altcoins through regulated investment vehicles.

This could inject billions of dollars of institutional capital into the market and significantly promote mainstream adoption.

Resolving SEC and CFTC Dispute... Who Regulates?

Meanwhile, the testimony comes at a point when legislators are revisiting the key question that has long plagued the industry: who regulates what?

On the other side, Senators Tim Scott, Cynthia Lummis, and Ruben Gallego will lead the push. The general opinion is to align the Senate's priorities with the House's "Crypto Week" starting July 14th.

There, legislators can discuss the same bill and vote on the final version. Momentum has accelerated since President Trump supported the GENIUS Act, which triggered the House to adopt the bill faster than previously competing legislation.

The GENIUS Act has already passed the Senate, while the CLARITY Act is still in draft form but has recently made progress. Both bills are at the center of today's debate.

The GENIUS Act aims to establish a stablecoin framework including reserve requirements and federal licensing. Meanwhile, the CLARITY Act will allocate primary oversight of most digital assets to the Commodity Futures Trading Commission (CFTC), while reducing the role of the U.S. Securities and Exchange Commission (SEC).

Tax Reform Re-enters Crypto Discussion

While market structure headlines, the House Ways & Means Oversight Subcommittee will hold a hearing today on "Making America the Crypto Capital of the World". The focus is on building a 21st-century tax policy framework for digital assets.

The proposal will exempt capital gains tax for transactions under $300 within an annual limit of $5,000. This amendment aims to enable small transactions and everyday crypto use without punitive tax consequences.

It also seeks to defer taxation on staking and mining rewards until the assets are sold or used. This reflects arguments that taxing unrealized gains is unfair.

Similarly, Senator Lummis is quietly reviving the cryptocurrency tax reform. After the amendment to Trump's budget bill failed, she has introduced an independent bill to modify the Internal Revenue Code's treatment of digital assets.

Additionally, the bill will extend securities lending regulations to digital assets, enabling clear processing of Token lending contracts.

While still in the draft stage, Senator Lummis is inviting public opinion and stated that bipartisan support will be crucial in advancing the bill through the Senate Finance Committee.