Ripple CTO Emeritus David Schwartz has responded to claims that Ripple supports crypto regulations designed to shield $XRP while sidelining smaller projects.
The debate resurfaced after Charles Hoskinson criticized Ripple CEO Brad Garlinghouse for backing the Clarity Act despite its flaws. Specifically, Hoskinson faulted Garlinghouse for supporting the bill in its current form, arguing that it favors established tokens like $XRP while automatically classifying newer projects as securities.
During a livestream, he likened the move to “climbing up the ladder and pulling it up”. His remarks sparked mixed reactions. Some $XRP supporters argue that Hoskinson’s “ladder description” is unfair for a company that faced years of legal pressure from the SEC and fought for its survival.
Ripple’s David Schwartz has now joined the conversation.
Key Points
- Ripple CTO Emeritus has responded to Charles Hoskinson’s claim that Ripple supports legislation that benefits $XRP at the expense of smaller tokens.
- David Schwartz acknowledged Ripple could act in its own interest but stressed that the company has consistently avoided undermining emerging or future industry players.
- He argued that passing a flawed regulatory bill is still preferable to leaving the industry without any legal framework.
- Insider sources say crypto and banking executives are still negotiating disputes related to stablecoin yields.
Ripple Will Pursue Its Interest If Necessary
In his remark, Schwartz acknowledged that Ripple, like any company, does not operate purely out of altruism. However, he stressed that Ripple has repeatedly chosen not to advocate solely for its own interests, even when it had the opportunity to do so.
At the same time, he admitted the company would act in its own interest if necessary. Consequently, he maintained that critics have every right to hold Ripple accountable if they believe it prioritizes its interests over the broader industry.
Imperfect Clarity Is Better Than None
Nonetheless, Schwartz framed the issue more strategically. He argued that competitors are not just rivals but contributors to the industry’s overall legitimacy. Drawing parallels to the early internet era, he said widespread success among multiple firms builds enterprise trust, regulatory confidence, and consumer adoption.
While reiterating Garlinghouse’s stance, Schwartz maintained that imperfect regulatory clarity remains preferable to having no bill. However, he agreed that pushing for improvements to the legislation is both fair and necessary.
Although the Clarity Act could favor legacy tokens like $XRP, as Hoskinson argued, $XRP already secured legal clarity through its federal court case.
Despite this, Garlinghouse continues to push for broader regulatory clarity through the bill, stressing that Ripple’s success depends on the overall health of the crypto industry. However, Ripple has made clear it will not back any legislation that revokes $XRP’s non-security status.
Current State of the Legislation
Meanwhile, market participants await a decision from lawmakers after the March 1 deadline for banking and crypto executives to resolve key disputes, particularly over stablecoin yields, expired.
The U.S. Senate Committee on Agriculture has already advanced the markup of its version of the Clarity Act, whereas the Banking Committee has yet to act due to the dispute.
Although officials have not announced a formal agreement, pro-crypto journalist Eleanor Terrett reports that insiders say negotiations are still progressing ahead of a planned markup session later this month.