Ripple CEO Brad Garlinghouse has expressed growing optimism that the much-anticipated CLARITY Act—America’s major proposed crypto legislation—stands a 90% chance of passing by the end of April. Garlinghouse’s remarks come amid mounting momentum in Washington, D.C. to establish regulatory guardrails for digital assets, following months of gridlock in the Senate. With U.S. businesses and investors navigating years of legal uncertainty, the new bill promises clearer definitions and a framework that could open the door for financial institutions to enter the crypto spot market more confidently.
The State of Crypto Regulation in Washington
Formally titled the Digital Asset Market Clarity Act and introduced as Bill 3633, the legislation secured approval in the House of Representatives in early 2025 with a decisive 294-134 vote. Its progress, however, stalled in the Senate due to debates over agency jurisdiction. Garlinghouse emphasized that recent dialogues with banking sector representatives, as well as compromises reached with crypto industry leaders, have played a critical role in breaking the impasse and rekindling prospects for the law’s advancement.
Scope of the Legislation and Its Industry Impact
At its core, the CLARITY Act seeks to delineate the regulatory boundaries for blockchain-based assets and stablecoins, offering clear guidance on when such assets fall under securities or commodities oversight. The bill aims to settle the long-standing turf war between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). SEC Chairman Paul Atkins indicated the agency is working in tandem with the CFTC under a joint venture known as “Project Crypto” to coordinate their approach to regulation.
A central topic in these discussions revolves around whether stablecoins can offer returns—a question that previously bogged down the bill in the Senate Banking Committee. Serving as one of the key negotiators, Garlinghouse reiterated that clear legal standards are essential for institutions to participate in the market without ambiguity or risk of sudden regulatory pushback.
Potential Impact on XRP and Corporate Adoption
Ripple, the company behind the XRP token, has taken strategic steps by investing $3 billion since 2023 to bolster its custody and treasury solutions. While U.S. courts have already declared that XRP is not a security, the establishment of comprehensive federal legislation would formalize and secure this status for the broader industry, removing lingering doubts.
Should lawmakers finalize regulations that clarify entry requirements for crypto markets, industry experts believe it could spark mass adoption—especially benefitting projects that offer liquidity and real-world use cases. Passage of the bill in April could reawaken interest among institutional players, many of whom have exercised caution during recent market pullbacks.
Among the bill’s most discussed aspects is the clarification around yields from stablecoins. Sources indicate that in negotiations conducted in Washington, the White House has set a negotiation deadline of March 1 to resolve these points and keep the process on track.
Garlinghouse noted heightened interest from finance chiefs and corporate treasurers in deploying stablecoins and cross-border payment solutions. Yet, he underscored that what the market truly needs are clear and robust federal policies, deeming them the prerequisite for any significant influx of institutional capital.
“We’re seeing CFOs and company treasuries begin to explore how to tap into stablecoins,” Garlinghouse remarked, “but before large-scale capital moves in, everyone is waiting for explicit federal regulations.”
