Brad Garlinghouse Calls CLARITY Act Crucial for US Crypto Regulation
- Ripple CEO Brad Garlinghouse has indicated that the window for the passage of the CLARITY Act is now open, suggesting the United States is nearing a turning point...
- Under the proposed framework, digital assets classified as securities would fall under the jurisdiction of the SEC, while those classified as commodities would be overseen by the CFTC.
- Garlinghouse reported that the momentum for the bill increased after the Senate returned from its Easter recess.
Ripple CEO Brad Garlinghouse has indicated that the window for the passage of the CLARITY Act is now open, suggesting the United States is nearing a turning point in cryptocurrency regulation. The legislation is designed to establish a clear market structure by dividing oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Under the proposed framework, digital assets classified as securities would fall under the jurisdiction of the SEC, while those classified as commodities would be overseen by the CFTC. This division aims to eliminate the legal ambiguity that has led to an enforcement-first regulatory approach in the U.S. For several years.
Legislative Progress and Timeline
Garlinghouse reported that the momentum for the bill increased after the Senate returned from its Easter recess. The CEO’s optimism follows direct meetings in Washington with White House officials and several key senators, including Bill Hagerty, Bernie Moreno, Tim Scott, and John Boozman.
While previous estimates for the bill’s passage were set for April 2026, Garlinghouse has revised the realistic target to the end of May 2026. He noted that the political process is reaching a stage where compromise is more likely due to increasing frustration over the lack of clarity.
The Stablecoin Yield Dispute
The primary obstacle preventing the CLARITY Act from advancing since January 2026 has been a disagreement over stablecoin yield. The conflict centers on whether stablecoins should be allowed to offer interest-like rewards, a feature supported by crypto firms but opposed by traditional banks.
To resolve this deadlock, Senator Thom Tillis is expected to introduce a draft compromise during the week of April 16, 2026. This proposal reportedly bans passive yield while allowing rewards that are tied to specific activity.
If the Senate Banking Committee accepts this compromise, a vote could potentially be scheduled for the final week of April 2026.
Industry and Agency Alignment
The push for the CLARITY Act has seen a shift in support from major industry players. On April 9, 2026, Coinbase CEO Brian Armstrong reversed his previous position and expressed support for the bill. Leadership within the SEC and the U.S. Treasury have indicated support during the same period.
Garlinghouse has emphasized that the alignment between the SEC and CFTC puts further pressure on Congress to codify these agency signals into durable law. The CEO previously estimated the odds of the bill’s passage at 80-90%.
When people are at their peak frustration, that’s when they finally compromise, and it gets done
Brad Garlinghouse
The development comes as Garlinghouse marks 11 years at Ripple, reflecting on a long-term policy battle to secure regulatory certainty for the U.S. Digital asset market.