Ripple backs CLARITY Act ahead of Senate vote

• Ripple urged the Senate to support the CLARITY Act.
• The company said rejecting the bill could expose users to FTX-style failures.
• Ripple argued clear rules would improve consumer protection and market oversight.

Ripple has urged the US Senate to approve the CLARITY Act, warning that rejecting the bill could leave cryptocurrency users exposed to failures similar to the collapse of FTX.

The company said the legislation would establish clearer rules for digital assets and strengthen protections for consumers and businesses operating in the crypto market.

“Voting against the CLARITY Act leaves crypto users exposed to FTX-style risks,” Ripple said.

Ripple argued that the bill would define the responsibilities of US regulators, improve oversight and reduce uncertainty for companies developing blockchain products.

The CLARITY Act is one of several crypto bills currently being considered by Congress as lawmakers debate how digital assets should be regulated in the United States.

Supporters say the legislation would provide clearer market rules, while critics argue it should include stronger safeguards around political conflicts of interest and consumer protections.

The Senate's decision is expected to shape the future of US cryptocurrency regulation and could influence how digital asset businesses operate in the country.