Ripple CEO Brad Garlinghouse stated he now believes there is a 90 percent chance that the CLARITY Act will become law by April 2026. He described the outlook as stronger than before, citing consistent progress in Washington and more focused discussions among lawmakers, the White House, crypto companies, and banking representatives. According to Garlinghouse, talks have moved from broad disagreements to resolving specific policy details, signaling improved momentum for the legislation.
Garlinghouse shared his updated assessment during an appearance on Fox Business, highlighting growing bipartisan interest in digital asset market structure. He noted that recent meetings helped narrow differences that had previously slowed progress. The House of Representatives passed the CLARITY Act in 2025 with bipartisan support, while the Senate has been slower. Officials involved in negotiations are reportedly aiming to resolve remaining policy issues by March 1, 2026, a timeline seen as critical ahead of the midterm election cycle.
The CLARITY Act, formally called the Digital Asset Market Clarity Act, aims to create a clear federal framework for digital assets. It would assign assets that resemble securities to the Securities and Exchange Commission and commodity-like assets to the Commodity Futures Trading Commission. Supporters say this clarity would reduce legal uncertainty, lower compliance risks, and encourage participation from established financial institutions.
Stablecoins remain a central topic, particularly whether issuers could offer yield-style features on reserve-backed holdings. Banking groups warn of risks to deposits, while crypto firms argue restrictions could push activity offshore. Garlinghouse emphasized that legal uncertainty has constrained innovation, noting that Ripple’s court outcomes have provided partial but incomplete guidance and cannot replace industry-wide rules.
Market sentiment has shifted accordingly, with platforms like Polymarket showing rising confidence in the bill passing within the proposed timeframe. Analysts view the next few months as a crucial period for securing regulatory clarity before political factors complicate progress further.
