CLARITY Act Still Faces Uncertainty Despite Stablecoin Deal, Warns Ripple Chief
At a crypto industry conference on Tuesday, Brad Garlinghouse discussed developments surrounding the CLARITY Act following the announcement by US legislators of a stablecoin yield agreement that may help push the bill forward.
Ripple Labs CEO Brad Garlinghouse cautioned on Tuesday that the latest developments on the digital asset market structure legislation in the US Senate do not ensure the bill will ultimately become law, suggesting that the coming two weeks will play a critical role.
During his address at the Consensus crypto conference held in Miami, Garlinghouse stated that the chances of the market structure legislation, known as the CLARITY Act, getting approved would decline "precipitously" if action is not taken within the next two weeks. The Ripple chief executive explained that the bill would become "too much of a loaded issue" as campaigns heat up ahead of the 2026 US midterm elections, with primary races continuing through the November voting period.
"Do I think it's perfect? Hell no. I challenge you to show me any piece of legislation that we would call perfect. There's tradeoffs and compromises, but I do think clarity is better than chaos."
Brad Garlinghouse, Ripple CEO
Garlinghouse's comments followed last week's announcement by US Senators Angela Alsobrooks and Thom Tillis regarding a compromise deal on stablecoin yield that has the potential to move the CLARITY Act forward. The issues surrounding stablecoins, along with tokenized equities and ethics considerations, have been among the key factors delaying the bill's progress in the Senate after its passage through the US House of Representatives in July 2025.
Before reaching a full chamber vote, the CLARITY Act, which the Senate Agriculture Committee already moved forward during a January markup session, must also secure approval from the Senate Banking Committee. Representatives from Ripple, including Garlinghouse and other company executives, have participated in negotiations regarding the CLARITY Act involving White House officials along with representatives from both the cryptocurrency and traditional banking sectors.
"The Clarity Act is not a future priority; it is the priority. Every corner of the industry is operating under legal uncertainty that Congress has the power to fix. The Senate needs to act."
Senator Cynthia Lummis
US financial agencies already moving forward without Congress
In March, the US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) executed a memorandum of understanding aimed at coordinating their regulatory approach to digital asset market structure oversight. Paul Atkins, SEC Chair, characterized the agency's strategy toward cryptocurrency regulations as providing a "beginning, not an end," noting that the commission continues to await passage of the CLARITY Act.