Insights from Ripple’s CEO on the Clarity Act
Brad Garlinghouse, the CEO of Ripple, recently offered insights into the anticipated passage of the Clarity Act, predicting an 80% likelihood that it will be approved by the end of April. He called on those in the cryptocurrency sector to seek compromise instead of waiting for a flawless legislative solution. The Clarity Act has faced an ongoing stalemate in the Senate Banking Committee since January, despite being close to passing earlier in the process.
Coinbase’s Withdrawal and Legislative Challenges
Coinbase, the foremost cryptocurrency exchange in the United States, notably retracted its endorsement of the bill, citing disagreements over essential elements such as stablecoin yields. “We were pretty darn close to the Clarity Act going into the Banking Committee markup process, which would have been a big positive step,” Garlinghouse acknowledged, emphasizing that while the current proposal has its imperfections, it is better to proceed than to stall. “I think that it is so clear that clarity is better than chaos. The Clarity Act, as written, is not perfect…Let’s not let perfection get in the way of progress,” he remarked.
Ripple’s Position and Industry Uncertainty
Ripple, having engaged in a legal battle with the U.S. Securities and Exchange Commission (SEC), has been a strong supporter of advancing this legislation. While Ripple achieved a level of clarity with a recent federal court ruling stating that XRP is not classified as a security, the broader cryptocurrency industry continues to face uncertainty.
“Whether we like it or not, the fortunes of Ripple rise and fall a little bit on the fortunes of the crypto industry,” Garlinghouse emphasized, highlighting the interconnectedness of the sector.
Negotiations and the Urgency for Progress
Despite the Clarity Act remaining stalled in committee, negotiations among lawmakers are ramping up in an effort to overcome the impasse before the upcoming spring recess. Recently, Ripple participated in a summit at the White House aimed at bridging the gap between banking and cryptocurrency leaders, which did not yield the desired results. As the administration intensifies its pressure to establish a regulatory framework ahead of the 2026 midterm elections, time is of the essence for the legislation’s potential progress.
