Ripple Labs CEO Brad Garlinghouse has expressed support for the Clarity Act, a legislative project aimed at providing a formal structure to the U.S. cryptocurrency market. Although the proposal is currently stalled in Congress, the chief executive stressed the need to advance available regulations to prevent the lack of clear rules from continuing to impact development in this area.
In an interview, Garlinghouse addressed the legislative process and questioned the gridlock the Clarity Act has caused. “We’re on the verge of the Clarity Act.” markup Gaining approval from the Senate Banking Committee would have been a very important positive step. But it stagnated,” he noted.
Resistance on the part of the industry to improvements that can be made in the legal text for Ripple administrators It can be counterproductive in the long run.
In her remarks, Garlinghouse urged pragmatism from her colleagues and lawmakers. “What I’m saying about this is, let’s stop disguising public anger over specific things as being representative of the industry as a whole as something that maybe can be improved,” he said.
My point is primarily that I think it’s obvious that clarity is better than chaos. And the law of clarity, as written, is not perfect. No one here has ever seen a perfect law. You may not like it, but don’t let the pursuit of perfection stop you from progressing.
Brad Garlinghouse, Ripple Labs CEO
Similarly, Garlinghouse recalled his company’s nearly five-year legal battle with the Securities and Exchange Commission. The businessman was sentenced by federal judge Annalisa Torres to the digital asset XRP issued by his company. not security. This clarified the regulations for the entity and its operations.
However, the executive warned: This legal certainty is personal and does not apply to other participants. of the market. “There is no regulatory clarity for the industry as a whole, and whether we like it or not, Ripple’s fortunes will rise and fall with the fortunes of the crypto industry,” he acknowledged.
Based on this assumption, Ripple’s CEO estimated an 80% chance that the Clarity Act would be signed into law by President Donald Trump by the end of April 2026. This prediction differs significantly from others, including that of Patrick Witt, executive director of the President’s Advisory Council on Digital Assets. As reported by CriptoNoticias, he estimated that Clarity would be signed into law on April 3.
Garlinghouse’s vision contrasts with that of other representatives of the crypto sector, such as Brian Armstrong, CEO of Coinbase, the largest exchange in the United States. He threatened to withdraw his support for the Clarity bill, citing disagreements over its current terms.
The core of the conflict lies in the benefits that stablecoins provide to users. At this time, it is not yet fully defined whether companies like yours will be able to provide returns to those who store stablecoins on exchanges.
The traditional banking community claims this will result in deposit flight of up to $6 trillion, equivalent to 30% of U.S. commercial deposits. Meanwhile, the cryptocurrency sector claims that stablecoin gains open the door to competitiveness.
(Tag translation) Cryptocurrency
