Ripple CEO Optimistic About Clarity Act's Passage by April
By John Nada·Feb 20, 2026·7 min read
Ripple CEO Brad Garlinghouse sees a high chance for the Clarity Act to pass, which would clarify digital asset regulations and foster market confidence.
Ripple CEO Brad Garlinghouse has expressed strong confidence that the Clarity Act will pass by the end of April, with a 90% chance of success. This legislation aims to clarify the regulatory framework for digital assets, distinguishing between those that fall under securities law and those overseen by the Commodity Futures Trading Commission.
Garlinghouse noted that momentum for the bill has accelerated, fueled by renewed engagement from lawmakers and the White House. Recent discussions in Washington included leaders from both the crypto industry and traditional banking, indicating a political willingness to advance the legislation that has faced delays. This engagement reflects a significant shift in how lawmakers view the crypto space, with many recognizing the need for a regulatory environment that fosters innovation while ensuring consumer protection.
The Clarity Act seeks to define the regulatory landscape for digital assets, addressing long-standing uncertainties that have hindered innovation and market confidence. Garlinghouse highlighted the need for clear rules, particularly as Ripple has secured a federal court ruling affirming that XRP is not classified as a security. This ruling provides a crucial precedent in the ongoing debate over how digital currencies should be regulated. He remarked that the industry cannot thrive in a state of regulatory limbo, which has stifled market sentiment and growth.
Despite recent volatility in the crypto markets, with major cryptocurrencies facing downward pressure, Garlinghouse pointed to ongoing interest from corporate treasurers and financial institutions in stablecoins and liquidity management. This interest suggests a growing acceptance of digital assets within traditional finance, which could be bolstered by the passage of the Clarity Act. Ripple has invested nearly $3 billion in acquisitions since 2023, expanding its services into custody, prime brokerage, and treasury management, though it will now focus on integration rather than new deals. This strategy indicates Ripple’s commitment to building a robust infrastructure that can support the evolving needs of its clients in a more regulated environment.
Traditional financial players are increasingly calling for clearer regulations to compete effectively in this evolving landscape. This shift reflects a significant change in attitudes toward digital assets over recent years, as institutions begin to see the value and potential of integrating digital currencies into their operations. If the Clarity Act is passed, it could represent a pivotal moment in U.S. crypto regulation, establishing a framework that many industry participants have been advocating for.
Polymarket bettors have assigned an 82% likelihood that the bill will be approved by the end of the year, suggesting a growing consensus around its potential success. The White House reportedly aims to push negotiations forward on stablecoin rewards ahead of a target date of March 1, which is critical to the bill’s advancement. This target date signifies the urgency with which lawmakers are approaching the regulation of stablecoins, a key component in the broader dialogue about digital asset regulation.
As discussions continue, the implications of the Clarity Act are far-reaching. Should it pass, it would not only provide regulatory clarity but also impact the operational strategies of countless crypto firms and traditional institutions, potentially reshaping the market dynamics in the U.S. cryptocurrency sector. The political appetite for such a bill signals a readiness to embrace the digital asset revolution, aligning regulatory frameworks with industry needs and fostering a more balanced competitive environment. This potential shift could lead to increased investment in the crypto space, spurring innovation and boosting market confidence.
Garlinghouse framed the bill as imperfect but necessary, highlighting the importance of establishing a regulatory framework that can adapt to the fast-paced nature of the crypto market. He emphasized that while the Clarity Act may not address every concern within the industry, it represents a critical step toward achieving the regulatory certainty that has been long sought after.
In recent months, the crypto sector has experienced a notable pullback, with many digital assets facing significant fluctuations in value. Bitcoin and other major cryptocurrencies have struggled to maintain their market positions, leading to concerns among investors and industry stakeholders. Despite these challenges, Garlinghouse remains optimistic about the future of Ripple and the broader crypto market, noting that the demand for stablecoins and liquidity management solutions continues to grow.
Ripple's strategic investments in acquisitions and technology reflect its commitment to staying ahead of the curve in the rapidly changing financial landscape. The company has expanded its offerings to include custody solutions, prime brokerage services, and treasury management, positioning itself as a key player in the digital asset ecosystem. Garlinghouse indicated that while Ripple will pause on major deals in the near term to focus on integration, the company's vision for the future remains ambitious and forward-thinking.
Furthermore, Garlinghouse's remarks underscore a broader trend within the financial industry, where traditional banks and financial institutions are increasingly recognizing the importance of clear regulations to remain competitive. As digital assets gain traction, there is a growing acknowledgment that regulatory clarity is essential for fostering innovation while protecting consumers. This evolving mindset among traditional financial players signifies a shift towards a more collaborative approach between the crypto and banking sectors.
The Clarity Act's potential passage could catalyze a significant transformation in the regulatory landscape, paving the way for a more structured approach to digital asset management. Policymakers are grappling with the complexities of integrating digital assets into existing financial frameworks, and the Clarity Act represents an effort to address these challenges. By delineating which digital assets fall under the purview of securities laws versus those regulated by the Commodity Futures Trading Commission, the bill aims to create a clearer path for compliance and oversight.
As the negotiations surrounding the Clarity Act continue, the White House's involvement indicates a recognition of the importance of timely and effective regulation in the crypto space. The administration's push for stablecoin rewards and its willingness to engage with both the crypto and banking sectors demonstrates a proactive approach to fostering an environment conducive to growth and innovation. This collaborative spirit may help mitigate some of the longstanding concerns that have hindered the crypto industry's ability to thrive.
Moreover, the discussions around stablecoin rewards reveal the administration's intent to strike a balance between encouraging innovation and ensuring the stability of the financial system. By allowing limited stablecoin rewards that do not threaten traditional banking practices, lawmakers are attempting to create a regulatory framework that supports the growth of digital assets while safeguarding the interests of consumers. This delicate balancing act will be crucial as the Clarity Act moves closer to potential passage.
Should the Clarity Act pass, the implications for the broader financial ecosystem could be profound. A clearer regulatory framework would empower companies like Ripple to operate with greater certainty, potentially leading to increased investment and innovation in the sector. As traditional financial institutions begin to adapt to the realities of a digital asset economy, the passage of the Clarity Act could accelerate the integration of crypto solutions into mainstream financial services.
The urgency surrounding the Clarity Act is palpable, as stakeholders from various sectors are keenly aware of the need for regulatory clarity. The evolving landscape of digital assets presents both challenges and opportunities, and the passage of the Clarity Act could signal a new era for the U.S. cryptocurrency landscape. As lawmakers continue to engage with industry leaders and seek input from various stakeholders, the importance of achieving a regulatory framework that aligns with the needs of the industry cannot be overstated.
Garlinghouse's optimism regarding the Clarity Act reflects a broader sentiment within the crypto industry that regulatory clarity is on the horizon. As discussions progress, the potential for a more defined regulatory environment could ultimately foster a sense of confidence among investors and market participants, paving the way for the next wave of innovation in the digital asset space. The Clarity Act stands as a pivotal piece of legislation that could reshape the dynamics of the cryptocurrency market and elevate the United States' position in the global digital asset economy.