According to Ripple CEO Brad Garlinghouse, U.S. legislators should quickly introduce clear and pragmatic bills concerning stablecoins. Garlinghouse warns that the US risks being left behind as the adoption of stablecoins gains momentum across the financial industry worldwide.
While commenting about the current regulatory uncertainty surrounding stablecoins, Garlinghouse commented on the X social media platform. He emphasized that some clear rules would enable the US to capitalize fully on the enormous potential of digital currencies in financial innovation and economic development.
The XRP community has been very interested in them, especially after the Senate stalled the proposed legislation on stablecoins, dubbed the GENIUS Act. After failing to meet the cloture threshold on Thursday, the bill could not reach the votes required to take it to a full vote.
Arizona Senator Ruben Gallego explained that the delay resulted from insufficient time for Democratic lawmakers to review recent amendments to the bill. Even with industry leaders supporting it, a few Republican senators (Rand Paul boats among them) also voted against the bill in the procedural stage.
Industry Leaders Warn of Risks if US Delays Stablecoin Legislation
The GENIUS Act seeks to introduce an omnibus framework that regulates the issuance and oversight of stablecoins within the USA. Industry Participants believe that if there is no such structure, the digital asset innovation backlash will become more prevalent in locations with a more straightforward regulatory approach.
Treasury Secretary Scott Bessent reminded Congress of the hedging nature of the stablecoin legislation, reiterating the legislative strategic priority during this congressional cycle. Using a post that Garlinghouse reposted, Bessent assured that the bill is a “once-in-a-generation opportunity” to strengthen the global position of the US dollar.
Bessent also warned that further procrastination could send talent and capital into the pool’s deep end; the country’s competitive position in financial technology would then be undermined. Galaxy Digital CEO Mike Novogratz said that stablecoin regulation should not be a partisan issue and called for bipartisan collaboration to get it passed quickly.
The demands for regulatory clarity follow a flurry of stablecoin activity across the globe. Recently, crypto-native companies and traditional banks have also announced new stablecoin initiatives that are increasing pressure on US lawmakers.
Though the current bill failed to cross the procedural hurdle this week, sources say there may be a version that will be put forward for next week’s consideration. Lawmakers will use the extra time to settle outstanding issues and gather increased backing across the partisan lines.