A call was made by Ripple CEO Brad Garlinghouse urging U.S. lawmakers to expedite the development of a well-defined regulatory framework for stablecoins.
In a statement issued on May 9 via the social media platform X (formerly known as Twitter), it was emphasized by Garlinghouse that stablecoins are witnessing increasing global adoption, and a warning was issued that the United States could forfeit its competitive advantage if prompt regulatory action is not taken.
The swift incorporation of stablecoins into global markets was highlighted by Garlinghouse, who stated that their broad acceptance is being driven by practical use cases. He noted that continued delays in enacting clear regulations could restrict the nation’s capacity to fully capitalize on the technology’s benefits.
The remark was made in response to the U.S. Senate’s recent failure to advance the GENIUS Act, a proposed piece of legislation intended to establish a federal framework for stablecoin regulation.
On May 8, a vote of 49–48 was cast by U.S. lawmakers against the advancement of the bill, effectively halting its progression. A revised version of the legislation is anticipated to be presented in the upcoming weeks.
The decision was sharply criticized by U.S. Treasury Secretary Scott Bessent, who characterized the vote as a missed opportunity.
It was stated by Bessent that the GENIUS Act had the potential to strengthen U.S. influence and reinforce the dominance of the dollar amid a rapidly evolving financial environment. He further 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.
Surging Adoption of Stablecoins
Garlinghouse’s appeal has been issued at a time when the use of stablecoins is attaining record-breaking levels.
Stablecoins, in contrast to highly volatile digital assets such as Bitcoin, are generally pegged to fiat currencies like the U.S. dollar, thereby providing enhanced price stability and increased practicality for use in payments and cross-border transactions.
Data from a16z crypto revealed that stablecoin transaction volumes reached an all-time high of $1.82 trillion in March 2025, underscoring the expanding role these assets are playing within the digital economy.
As a result, the significance of stablecoins has begun to be recognized by traditional financial institutions. Over the past month, firms such as Stripe and Meta have expressed growing interest in the stablecoin space, indicating its escalating relevance within the wider financial landscape.
