Disclosure
Cryptocurrency trading is speculative and your capital is at risk when you trade. We may earn affiliate commissions from some of the products on this page - at no extra cost to you.
CLARITY Act Has 90% Chance of Passing by April, Says Ripple CEO

Highlights:

  • Brad Garlinghouse believes the CLARITY Act has 90% chance of passing by April.
  • The CLARITY bill aims to clarify oversight between the SEC and the CFTC for digital assets.
  • Prediction markets raise CLARITY Act passage odds to between 85 and 90%.

Brad Garlinghouse, the chief executive of Ripple, said he now believes the CLARITY Act has about a 90% chance of getting passed by April in the United States Congress. He shared this during interviews and industry discussions after meetings with lawmakers and regulators. His optimism is one of the strongest signals yet that long-stalled crypto regulation could move forward soon.

Advertisement

Banner

Garlinghouse’s comments followed a high-profile gathering at the White House where legal and compliance chiefs from Ripple, Coinbase, and other organizations met with banking representatives. The meeting aimed to sort out differences over stablecoin yield rules and other sticking points. 

One of the important questions that has arisen is how the yield of stablecoins should be treated from a federal perspective. Banks are now urging that the regulations be made more stringent in order to prevent the payment of interest on stablecoins by crypto companies. This is because banks fear that customers might withdraw their funds from banks in favor of higher interest rates.

CLARITY Bill Aims to Bring Clear Rules for Crypto

The CLARITY bill is designed to define how digital assets are regulated in the United States. One of its main goals is to clearly separate oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

For years, uncertainty over jurisdiction has created confusion for crypto companies. Some tokens have been labeled securities, others commodities, and enforcement actions often came without clear guidance beforehand. Supporters of the bill argue that this uncertainty has slowed innovation and pushed blockchain startups to move operations overseas.

The legislation, if it passes, will establish standards of compliance. Companies will understand which regulator they are dealing with. Industry leaders think that this will open the door to institutional investment as well as reduce legal wrangles.

Prediction Markets Signal Strong Approval Odds

Prediction markets have raised the odds that the bill will pass. After recent public comments from crypto executives and lawmakers, Polymarket showed approval odds between 85% and 90% for passage by April. That shift is not just talk. It reflects real money moving behind the expectation that Washington may finally put clear crypto rules in place.

It’s not just Brad Garlinghouse showing confidence in the bill. Coinbase CEO Brian Armstrong has also signaled progress. In a recent interview with CNBC, Armstrong said negotiations around the CLARITY Act have moved forward in a positive direction. 

What This Means for Markets

If the CLARITY Act passes by April, it could be one of the biggest regulatory milestones in U.S. crypto history. Clear rules may encourage more institutional investment, make compliance easier, and reduce legal risk for firms operating in the U.S.

However, for a cryptocurrency like XRP, which has a rather tumultuous regulatory history, full clarity could spell the beginning of wider adoption and integration with the traditional financial system. This is something investors and financial institutions have been waiting for over the years. Yet, while there may be growing optimism for the cryptocurrency market, the overall macroeconomic conditions still influence the market.

eToro Platform

Best Crypto Exchange

  • Over 90 top cryptos to trade
  • Regulated by top-tier entities
  • User-friendly trading app
  • 30+ million users
9.9

5 Stars

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Advertisement

Banner

Advertisement

Banner

Advertisement

Banner