Recent developments indicate a potential breakthrough in U.S. cryptocurrency regulation, with the Clarity Act gaining traction among lawmakers. Ripple CEO Brad Garlinghouse expressed optimism, stating there is now a 90% likelihood the bill will be passed by the end of April 2026.
Speaking on Fox Business, Garlinghouse highlighted an increase in engagement from both lawmakers and the White House, which he believes has contributed to the bill’s momentum. He mentioned that recent discussions in Washington included representatives from both the cryptocurrency sector and traditional banking, suggesting a growing political will to advance the legislation after a prolonged period of uncertainty.
The Clarity Act aims to delineate which digital assets should be classified under securities laws and which would fall under the oversight of the Commodity Futures Trading Commission (CFTC). The bill has encountered challenges, particularly regarding provisions related to stablecoin rewards and whether cryptocurrency platforms can offer yield-like incentives to their customers. Reports indicate that the White House has set a target date of March 1 to expedite negotiations on these issues.
Garlinghouse described the Clarity Act as an essential, albeit imperfect, measure. He pointed out that Ripple had recently secured a federal court ruling affirming that XRP is not classified as a security, providing the company with a level of clarity that remains elusive for much of the industry.
“The industry can’t live in limbo,” Garlinghouse stated, emphasizing that regulatory uncertainty has hindered innovation and negatively affected market sentiment.
His comments come amid a broader downturn in the cryptocurrency market, where Bitcoin and other digital assets have faced increased volatility. Despite these challenges, Garlinghouse noted that Ripple is witnessing heightened interest from corporate treasurers and financial institutions in areas such as stablecoins, liquidity management, and cross-border payments.
Since 2023, Ripple has invested nearly $3 billion in acquisitions, broadening its scope into custody, prime brokerage, and treasury management services. Garlinghouse mentioned that the company plans to pause major acquisitions for now to focus on integration.
Furthermore, he indicated that traditional financial institutions are increasingly seeking clearer regulations to ensure they can compete effectively in the evolving digital asset landscape. This shift in perspective reflects a significant change in attitudes toward cryptocurrencies over recent years.
If the Clarity Act is successfully passed, it could represent a pivotal moment for the U.S. cryptocurrency sector, establishing a framework that many industry stakeholders have long awaited.
Market sentiment surrounding the bill appears optimistic, with Polymarket bettors assigning an 82% probability to its passage by the end of the year.
In related discussions, sources familiar with negotiations on stablecoin yields reported that the White House has encouraged bankers to support a deal that would allow for limited stablecoin rewards without jeopardizing their deposit business. Banking representatives are reportedly working on language to facilitate this aspect, although a final draft will need to be reviewed by the banks involved.
The Clarity Act, aimed at defining the regulatory framework for digital assets in the U.S., is gaining momentum, with Ripple's CEO expressing high confidence in its passage. As lawmakers engage in discussions, the bill could significantly impact the cryptocurrency sector by providing much-needed regulatory clarity.