Ripple Warns Senate: Voting Against CLARITY Act Leaves Crypto Users Exposed to FTX-Style Risks
Ripple executives are pressing senators to support the CLARITY Act, arguing that rejecting the digital asset legislation would preserve regulatory gaps that leave consumers vulnerable to misconduct and risks similar to those exposed by the FTX collapse.
Ripple’s global co-head of public policy and government, Lauren Belive, presented the CLARITY Act as a direct test of congressional support for consumer safeguards. On July 15, 2026, she argued that opposing the legislation would preserve regulatory uncertainty that companies can exploit. Belive 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.”
Belive noted the bipartisan legislation was moving closer to a full Senate vote. She framed its progress as an opportunity to establish protections for people already participating in U.S. digital asset markets. She emphasized that U.S. digital asset markets exist, but federal rules have not kept up, leaving gaps that allowed FTX to collapse and wipe out customer funds. FTX filed for bankruptcy in November 2022 after founder Sam Bankman-Fried misused customer deposits to cover debts at sister firm Alameda Research. An $8 billion shortfall was revealed.
Belive said consumers face uncertainty over which protections apply, which agency is responsible, and what standards companies must meet. The CLARITY Act would coordinate authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), giving them clear shared jurisdiction over digital asset markets and requiring regulatory oversight before tokens hit the market. She argued that while good actors may follow standards voluntarily, consumers deserve a level playing field.
Ripple Chief Legal Officer Stuart Alderoty reinforced the warning, stating that a vote against the CLARITY Act is a vote to leave unregulated conditions in place for bad actors to exploit. He added, “We’ve seen this movie. Let’s not watch the sequel.”
Senator Cynthia Lummis confirmed on July 14 that the Senate’s CLARITY Act is ready after months of negotiations, with bill text expected in days. The choice before Congress is whether to define regulatory responsibilities and market standards or retain a system that has already failed consumers.