Former Ripple CTO and chief architect of the XRP Ledger David Schwartz directly linked the failure of the key crypto bill, the CLARITY Act, to lobbying by the traditional financial sector.

Commenting on the results of the vote in the U.S. Senate, where the bill failed to secure the required 60 votes (49 in favor and 50 against), Schwartz said that American politicians use concern for the public as a smokescreen to protect the dominance of commercial banks.

The statement was prompted by a public speech from Republican Senator Josh Hawley. He justified his vote against the bill by citing concerns for the regional economy: according to Hawley, legalizing yield-bearing stablecoins would trigger a mass outflow of deposits from small Missouri banks, depriving local farmers of capital for loans.

"He said the quiet part out loud. It's about protecting bank profits," Schwartz retorted. He stressed that he did not believe the CLARITY Act could "meaningfully reduce the ability of banks to make loans."

However, in Schwartz's view, if that really did happen, it would only mean the emergence of "a thriving ecosystem of people looking for decent yield with reasonable risk that could provide those loans" — a new digital ecosystem of investors willing to lend directly to the real economy on market terms.

Alongside Hawley, Senators Tillis, Moran, and Collins voted against their party's line, effectively siding with the banking lobby and the American Bankers Association (ABA).

Meanwhile, the launch of an XRP short ETF has been postponed for the 19th time

Alongside the political deadlock in the Senate, regulatory pressure has also affected Ripple investment products, highlighting Washington's overall conservative stance. The Securities and Exchange Commission (SEC) has postponed approval of Teucrium's 2x Short Daily XRP ETF, an instrument designed to profit from a decline in the token's price, until October 11 for the 19th time.

The situation looks contradictory: the bullish fund from the same company, Teucrium's 2x Long Daily XRP ETF, has been operating for some time and manages $151 million. Schwartz himself reacted to the delay with irony, remarking that he was "looking forward to the opportunity to open a short position" once the bureaucratic procedures were completed.

As the current regulatory status quo in the United States became further entrenched, XRP's price posted a moderate decline, correcting toward $1.29.