XRP Soars to $2.28 as Ripple CEO Prepares for Game-Changing Senate Hearing

• Ripple CEO Brad Garlinghouse will testify at a Senate Banking Committee hearing on July 9 about digital asset regulation and XRP’s classification as a commodity or security.

• Ripple recently ended its legal battle with the SEC after winning a court ruling that XRP on secondary exchanges is not an unregistered security.

• XRP rallied to $2.28 before the hearing, and a commodity classification could boost chances for a spot ETF approval.

The US Senate Banking, Housing, and Urban Affairs Committee will convene on Wednesday, July 9, at 10 a.m. ET for a pivotal hearing on digital asset regulation. The “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets” session will take place in Dirksen 538 and stream live online.

Ripple CEO Brad Garlinghouse will testify alongside Blockchain Association CEO Summer Mersinger, Chainalysis co-founder Jonathan Levin, and Paradigm general partner Dan Robinson. Committee staff indicate the discussion will center on whether specific tokens qualify as “digital commodities” under Commodity Futures Trading Commission oversight rather than Securities and Exchange Commission jurisdiction.

Ripple’s Legal Victory Sets Stage for Congressional Action

Garlinghouse enters the hearing following significant legal developments. On June 27, Ripple withdrew from the cross-appeal in its enforcement battle with the SEC. The CEO declared on social media that the company was “closing this chapter once and for all.”

The SEC is expected to drop its appeal of Judge Analisa Torres’s July 2023 ruling. The decision determined that XRP traded on secondary exchanges does not constitute an unregistered security. However, the judge maintained a $125 million civil penalty for earlier institutional sales.

This legal resolution removes immediate litigation uncertainty but transfers the fundamental question of XRP’s classification to Congress. The procedural agreement places the statutory definition of digital assets squarely within legislative purview.

Legislative Timeline Accelerates Market Structure Debate

Several bills addressing digital asset classification are advancing through Capitol Hill. The House passed the bipartisan FIT21 Act last year, while the Digital Asset Market CLARITY Act of 2025 would explicitly define tokens achieving “functional decentralization” as commodities.

Senate Banking Chairman Tim Scott has established a September 30 deadline for marking up comprehensive market-structure legislation. During a June 27 discussion, Scott emphasized his commitment to advancing the GENIUS Act to the President’s desk while ensuring the timely completion of market structure frameworks.

Wednesday’s testimony will directly inform the legislative drafting process. Industry witnesses are expected to present contrasting viewpoints on regulatory approaches.

Mersinger has previewed her testimony on social media, stating that “The United States urgently needs clear, comprehensive, and carefully designed rules for digital assets.” She will likely advocate for codifying CFTC jurisdiction over spot markets.

Robinson is anticipated to warn against regulations that favor incumbent custodians, concerns he has raised in previous congressional testimony.

XRP experienced significant price movement before the hearing. The token surged above $2.28 following news of Ripple’s pursuit of a US bank charter. This extends a two-week rally characterized by heavy options activity, particularly $3 strike calls.

A formal Senate indication that XRP qualifies as a commodity rather than a security could strengthen prospects for a spot exchange-traded fund. The hearing will establish the most comprehensive public record on congressional plans for distinguishing securities from commodities in digital asset markets.