Ripple CEO Brad Garlinghouse has called on US lawmakers to accelerate efforts to establish a clear regulatory framework for stablecoins.
In a May 9 statement shared on social media platform X (formerly Twitter), he emphasized the growing global adoption of stablecoins and warned that the US risks losing its competitive edge without urgent action.
Garlinghouse pointed to the rapid integration of stablecoins in global markets, stating that practical use cases fuel their widespread acceptance. He noted that delays in passing clear rules could hinder the country’s ability to benefit from the technology’s full potential.
The comment follows the US Senate’s failure to move forward with the GENIUS Act, a proposed bill that would introduce a federal approach to stablecoin regulation.
On May 8, US lawmakers voted 49–48 against advancing the bill, effectively stalling its progress. A revised version is expected to be introduced in the coming weeks.
The vote drew sharp criticism from US Treasury Secretary Scott Bessent, who described the decision as a missed opportunity.
According to Bessent, the GENIUS Act could have enhanced US influence while reinforcing the dollar’s dominance in a shifting financial landscape. He added:
“This bill represents a once-in-a-generation opportunity to expand dollar dominance and U.S. influence in financial innovation.
Without it, stablecoins will be subject to a patchwork of state regulations instead of a streamlined federal framework that is more conducive to growth and competitiveness.”
Rising stablecoin adoption
Garlinghouse’s call to action comes when stablecoin usage is reaching historic levels.
Unlike volatile digital assets like Bitcoin, stablecoins are typically pegged to fiat currencies like the US dollar, offering greater price stability and practical utility in payments and cross-border transactions.
According to data from a16z crypto, stablecoin transaction volumes reached a record high of $1.82 trillion in March 2025, highlighting their growing role in the digital economy.
As a result, traditional financial institutions are beginning to take notice of its significance. Over the past month, companies including Stripe and Meta have signaled increasing interest in the stablecoin sector, reflecting its rising importance in the broader financial ecosystem.
