web3: Ripple CEO is involved in the CLARITY Act, XRP is on the line

U.S. encryption legislation continues to warm up. According to the news, Ripple Chief Executive Officer Brad Garlinghouse recently participated in a closed communication around the CLARITY bill. Since the bill relates to the rules for the classification of digital assets, Ripple and XRP are again the focus of market attention.

The audience included the Minister of Commerce.

According to former Fox Business journalist Eleanor Terrett, a small number of encryption executives have had private exchanges with the United States Minister of Commerce, Howard Lutnick, in the presence of Tramp. Participants included Brian Armstrong, CEO of Coinbase, Chris Dixon, a16z partner and Arjun Sethi.

Discussions focused on moving the bill forward.

The focus of the communication was on the implications for the United States encryption industry of promoting the adoption of the CLARITY Act. Discussions included how the bill would support employment, economic growth and whether it would help to attract encrypted businesses and entrepreneurs to remain in the United States or to return to the United States market.

It was also reported that participants discussed obstacles to the advancement of the bill, including ethical challenges, and how the White House could assist in securing cross-party support. The United States Congress is still consulting on the bill, and Senator Cynthia Lummis is continuing to press for a clearer digital asset rule for the Democrats.

Ripple and XRP are more affected.

For Ripple, this legislative advance is even more significant. Over the past few years, the company has been under pressure from United States regulatory uncertainty, in particular the protracted litigation with the United States Securities and Exchange Commission, which has kept it at risk of expanding its local operations.

If the CLARITY Act ultimately provides a clearer division between digital goods and securities, the uncertainty of compliance that Ripple and other encryption companies face when developing and promoting block-chain financial products in the United States may decrease. The same is true of the market concern for the XRP as to whether the legal concerns of institutions when they enter the encrypted market will be reduced.