Ripple CEO Sees Stablecoins Exploding Globally, Calls for Rapid U.S. Regulation

Introduction

On May 9, 2025, Ripple CEO Brad Garlinghouse took to the social media platform X to sound the alarm on the United States’ sluggish approach to stablecoin regulation. As stablecoins—digital currencies pegged to assets like the U.S. dollar—experience explosive global adoption, Garlinghouse warned that the U.S. risks losing its competitive edge in the digital finance race without swift regulatory action. His comments follow the U.S. Senate’s narrow 49–48 vote on May 8, 2025, which blocked the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a bill aimed at creating a federal framework for stablecoin oversight.

The Global Stablecoin Boom

Stablecoins have become a cornerstone of the digital economy, with a global market capitalization surpassing $200 billion as of early 2025. Unlike volatile cryptocurrencies like Bitcoin, stablecoins offer price stability, making them ideal for cross-border payments, decentralized finance (DeFi), and bridging traditional and digital finance. Transaction volumes hit a record $1.82 trillion in March 2025, driven by adoption from major players like Meta, Stripe, and Ramp.

Garlinghouse highlighted the “sheer amount of recent announcements” across crypto, fintech, and traditional finance, noting stablecoins’ real-world applications. From facilitating instant global payments to enabling financial inclusion in underbanked regions, stablecoins are reshaping how value moves worldwide. The United Arab Emirates, for instance, has embraced stablecoins, with fuel provider Emarat partnering with Crypto.com to accept crypto payments at its stations.

Ripple’s Stake in the Stablecoin Market

Ripple, a San Francisco-based blockchain firm, is a major player in this space. In December 2024, Ripple launched Ripple USD (RLUSD), a U.S. dollar-pegged stablecoin backed by dollar deposits, U.S. government bonds, and cash equivalents. Approved by the New York Department of Financial Services (NYDFS) under a limited-purpose trust charter, RLUSD is designed for enterprise-grade use, offering transparency through monthly third-party audits. Ripple’s advisory board, including former FDIC Chair Sheila Bair and former Reserve Bank of India Governor Raghuram Rajan, underscores its commitment to regulatory compliance.

RLUSD is available on global exchanges like Uphold, Bitso, and MoonPay, targeting use cases such as cross-border payments, liquidity for remittances, and DeFi integration. Ripple’s acquisition of custody firm Metaco in 2023 and its partnerships with banks like Kotak Mahindra and Axis Bank in India bolster its infrastructure for institutional adoption. However, Garlinghouse emphasized that broader U.S. regulatory clarity is critical to scaling RLUSD and competing with dominant stablecoins like Tether’s USDT and Circle’s USDC, which control nearly 90% of the market.

The United States' Obstacle to Regulation The U.S. has lagged behind jurisdictions like the European Union, Hong Kong, and Singapore, which have implemented comprehensive stablecoin regulations. The EU’s Markets in Crypto-Assets (MiCA) framework, effective in late 2024, sets strict reserve requirements and transaction caps, providing a model for others. In contrast, the U.S. relies on a patchwork of state-level rules, creating uncertainty for issuers.

The GENIUS Act, introduced by Senator Bill Hagerty (R-TN) and co-sponsored by Senators Tim Scott (R-SC) and Cynthia Lummis (R-WY), aimed to establish federal licensing, risk management, and reserve rules for stablecoin issuers. Its failure to advance in the Senate drew sharp criticism from Garlinghouse, who argued that delays could cede economic advantages to other nations and weaken the U.S. dollar’s global dominance. Posts on X echoed his frustration, with users like @Anonypseud noting Treasury concerns about the dollar’s status.

Garlinghouse’s call for “workable, clear rules” aligns with broader industry sentiment. S&P Global Ratings predicts U.S. federal stablecoin legislation will gain momentum in 2025, driven by the need to balance innovation with consumer protection. Regulatory bodies like the SEC and CFTC are also crafting frameworks, bolstered by pro-crypto appointments under President Donald Trump, such as Paul Atkins to lead the SEC.

Risks of Inaction

Without federal regulation, Garlinghouse warns, the U.S. risks missing out on job creation, capital formation, and innovation. Stablecoins could transform financial systems by enabling faster, cheaper transactions, particularly in regions with limited banking access. However, inadequate oversight could lead to risks like insufficient reserves or operational failures, potentially destabilizing markets. The 2022 depegging of Tether’s USDT and 2023 slippage of Circle’s USDC highlight these vulnerabilities.

Ripple’s own history with the SEC, including a 2020 lawsuit alleging unregistered XRP sales, underscores the stakes. While a 2023 ruling clarified that XRP itself is not a security, the case highlighted the need for regulatory clarity. Garlinghouse’s optimism about bipartisan progress, expressed in February 2025 after meetings with lawmakers, suggests a shift toward a more crypto-friendly U.S. environment, but the Senate’s recent vote tempers expectations.

Looking Ahead

Garlinghouse’s urgency reflects the transformative potential of stablecoins and the competitive global landscape. Ripple’s RLUSD, backed by robust compliance and institutional partnerships, positions it to capitalize on this trend, but its success hinges on U.S. policy. As jurisdictions like Japan and the UAE advance crypto-friendly frameworks, the U.S. faces pressure to act. The House’s Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act and ongoing SEC-CFTC efforts signal progress, but Garlinghouse and industry leaders stress that time is running out.

Conclusion

The global stablecoin surge is undeniable, with Ripple at the forefront through RLUSD and its blockchain expertise. Brad Garlinghouse’s call for rapid U.S. regulation is both a warning and a plea for action. As stablecoins redefine finance, the U.S. must move quickly to foster innovation while mitigating risks. Failure to do so could see America sidelined in a digital currency race it cannot afford to lose.