Ripple Focuses on US Legislation for Stablecoins, Bonds

- Ripple's lobbying focus includes the Digital Asset Market Clarity Act (H.R. 3633), which aims to clarify the jurisdictional lines between the SEC and the CFTC. Ripple's CEO, Brad Garlinghouse, has stated there is a 90% probability of the act passing by April 2026, citing a White House-imposed negotiation deadline to resolve remaining issues. - A key piece of legislation, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, was signed into law in July 2025. It mandates that stablecoin issuers must back their coins 1:1 with reserves of cash or short-term U.S. Treasuries, publish monthly audited reports, and prohibits paying interest to holders. - In the second quarter of 2025, Ripple spent $230,000 on in-house lobbying efforts, part of a larger trend that has seen the company spend nearly $6.79 million since 2015 to influence digital asset policy. This is part of a broader industry push, with firms like Ripple, Coinbase, and Andreessen Horowitz contributing over $70 million to a "war chest" to support pro-crypto political candidates. - For tokenized bonds, the U.S. Securities and Exchange Commission (SEC) has clarified that these instruments are subject to the same federal securities laws as traditional bonds. Issuers must either register offerings with the SEC or qualify for an exemption, such as a private placement to accredited investors. - A major point of contention delaying the Digital Asset Market Clarity Act is the banking industry's opposition to allowing crypto firms to offer rewards or yield on stablecoins. Banks argue this would create unregulated bank-like deposits, while the crypto industry sees it as an anti-competitive stance. - Ripple is pursuing a Federal Reserve master account and a national bank charter from the Office of the Comptroller of the Currency for its affiliate, Standard Custody & Trust Company. CEO Brad Garlinghouse argues this would provide greater regulatory oversight for Ripple's stablecoin, RLUSD, and ensure fairer competition with traditional financial institutions. - The passage of the GENIUS Act has already led to an uptick in stablecoin activity among institutional players, as it provides the clarity needed for banks and CFOs to engage with the asset class. On-chain transfer volumes for stablecoins surpassed $27 trillion in 2024, demonstrating their growing use as institutional payment and settlement rails. - The tokenization of assets like bonds is driven by the potential for increased liquidity, faster settlement times (minutes instead of days), and reduced counterparty risk. This allows for fractional ownership and lowers barriers to entry for a wider range of investors.