Ripple's global co-head of public policy and government, Lauren Belive, urged the U.S. Senate on July 15, 2026, to pass the CLARITY Act, warning that rejection would leave cryptocurrency holders exposed to bad actors exploiting regulatory gaps. Belive argued that opposing the bipartisan legislation would preserve regulatory uncertainty similar to conditions that enabled the FTX collapse in November 2022, which resulted in an estimated $8 billion customer fund shortfall. The CLARITY Act would establish shared jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital asset markets.
Ripple Executive Frames CLARITY Act as Consumer Protection Test
Belive presented the CLARITY Act vote as a direct test of congressional support for consumer safeguards. She stated on X: "Voting no on the CLARITY Act isn't being against the crypto industry -- it's anti-consumer. It's a vote to leave crypto holders exposed to bad actors playing regulatory arbitrage."
The Ripple executive noted the bipartisan legislation was advancing toward a full Senate vote. She framed its progress as an opportunity to establish protections for participants in U.S. digital asset markets. Belive emphasized: "The bipartisan CLARITY Act is now advancing towards a vote on the Senate floor, and it is a vote for consumer protection."
Her argument centered on the gap between established digital asset markets and federal rules governing them. She pointed to FTX as evidence of consequences when customer funds remain exposed without clear oversight: "U.S. digital asset markets are here, but the federal rules to protect consumers have not kept up. The same regulatory gaps that let bad actors like FTX collapse and wipe out customer funds are still wide open today."
FTX Collapse Highlighted Regulatory Gap Consequences
Cryptocurrency exchange FTX collapsed and filed for bankruptcy in November 2022 following revelations about its financial relationship with sister trading firm Alameda Research and a surge in customer withdrawals. Founder Sam Bankman-Fried funneled billions of dollars in customer deposits to Alameda to cover its debts.
A leaked balance sheet showed Alameda relied heavily on FTT, an illiquid token created by FTX, as collateral. The disclosure triggered withdrawals FTX could not meet, leading it to halt withdrawals and enter bankruptcy with an estimated $8 billion shortfall.
CLARITY Act Would Establish Shared SEC-CFTC Authority
Belive said consumers currently face uncertainty over which protections apply, which agency is responsible for oversight, and what obligations companies must satisfy. The CLARITY Act would coordinate authority between the SEC and CFTC.
"Today, consumers are left guessing what protections apply, which regulator is responsible, and what standards companies must meet. The CLARITY Act would fix that -- giving the CFTC and SEC clear, shared jurisdiction over digital asset markets, and by requiring real regulatory oversight before tokens hit the market," she described.
Belive argued that responsible companies may follow appropriate standards voluntarily, but voluntary compliance cannot guarantee that every market participant follows the same rules. She noted: "Good actors will always do the right thing, but consumers deserve a level playing field. That is the choice in front of Congress right now: put clear guardrails in place for everyone, or leave consumers exposed to bad actors exploiting the gaps."
Ripple Warns Rejection Preserves Failed Status Quo
Belive directly challenged lawmakers who support regulation while opposing the CLARITY Act. She said rejecting a bill intended to create a federal framework would preserve a status quo that has already failed consumers.
"You can't credibly call yourself pro-regulation and vote no on the bill built to actually create regulation. At some point, opposing CLARITY is just a vote to preserve the status quo -- and the status quo is what failed consumers in the first place," she concluded.
Ripple Chief Legal Officer Stuart Alderoty, who also serves as president of the National Cryptocurrency Association, reinforced that warning. He argued that voting against the bill would leave existing gaps open to exploitation instead of replacing them with defined oversight. Alderoty warned: "A vote against the CLARITY Act is a vote to leave the same unregulated conditions in place to be exploited by bad actors. We've seen this movie. Let's not watch the sequel."
Senator Cynthia Lummis said on July 14 that the Senate's CLARITY Act is ready after months of negotiations, with bill text coming in days.
FAQ
What did Ripple's Lauren Belive say about the CLARITY Act on July 15, 2026?
Lauren Belive, Ripple's global co-head of public policy and government, stated on X that voting against the CLARITY Act would be "anti-consumer" and would leave crypto holders exposed to bad actors exploiting regulatory gaps. She described the bipartisan legislation as advancing toward a Senate floor vote and characterized it as a vote for consumer protection.
How would the CLARITY Act change cryptocurrency regulation?
The CLARITY Act would establish shared jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over digital asset markets. According to Belive, the legislation would require real regulatory oversight before tokens hit the market and would define which protections apply, which regulator is responsible, and what standards companies must meet.
What regulatory gaps did the FTX collapse expose in November 2022?
FTX collapsed and filed for bankruptcy in November 2022 after founder Sam Bankman-Fried funneled billions of dollars in customer deposits to sister trading firm Alameda Research to cover its debts. A leaked balance sheet revealed Alameda relied heavily on FTT, an illiquid token created by FTX, as collateral. The disclosure triggered withdrawals FTX could not meet, resulting in an estimated $8 billion shortfall and the halt of customer withdrawals.
