Ripple CEO Says Delaying Crypto Laws Could Backfire After Next Crisis

The debate over U.S. crypto regulation is heating up, and Ripple CEO Brad Garlinghouse is making his position clear: the industry needs rules, even if they are not perfect.

Reacting to growing discussion around the proposed Clarity Act, Garlinghouse said lawmakers should avoid delaying regulation in search of a flawless bill. “Let’s not let perfect be the enemy of good,” he said, adding that what the crypto industry needs most right now is a clear framework that allows innovation to grow.

“No bill is better than a bad bill,” but time is running out

That message was echoed by Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets. Witt said that while bad legislation should be avoided, assuming crypto can operate forever without clear rules is unrealistic.

“There will be a crypto market structure bill,” Witt said, calling it a matter of when, not if. He warned that missing the current political window could leave the industry exposed to harsher regulation later, especially after any future financial crisis.

Why the Clarity Act matters

The Clarity Act is designed to set the “rules of the road” for crypto, including how tokens, stablecoins, and digital asset platforms are regulated. Supporters argue that clear rules would finally give large institutional investors the confidence to enter the market at scale.

Market analysts say this could unlock the next phase of crypto growth, boosting liquidity, prices, and long-term stability across the ecosystem.

Stablecoins are the main sticking point

One of the biggest disagreements around the bill involves stablecoins, particularly whether users should earn yield on them. Banks argue that allowing yield could pull money out of traditional deposits, while crypto firms say stablecoins are mainly used for payments and transfers, not savings.

Lawmakers are now trying to find a compromise that balances innovation with financial stability.

Garlinghouse: clarity over chaos

Garlinghouse has repeatedly stressed that imperfect rules are better than regulatory confusion. He argues that years of uncertainty have held back innovation in the U.S. and pushed crypto companies offshore.

“No piece of legislation ever satisfies everyone,” he said. “But a clear framework beats chaos every time.”

With political timelines tightening ahead of U.S. midterm elections, industry leaders say the next few weeks could be critical. For Ripple and much of the crypto sector, the message is clear: act now, or risk worse rules later.