Brad Garlinghouse, CEO of Ripple, believes momentum is building around the CLARITY Act, suggesting the long-discussed crypto market structure bill could finally move forward soon. Speaking at a global economy event, he pointed to progress in negotiations between banks and crypto firms, particularly around stablecoin yields.
“When people are at their peak frustration, that’s when they finally compromise… I think we’re there.”
Garlinghouse indicated that the prolonged standoff in Washington is nearing resolution, with discussions picking up again in the Senate.
Stablecoin Yield Debate Nearing Resolution
The biggest sticking point for the CLARITY Act has been how to handle yields on stablecoins. Traditional banks worry that allowing crypto platforms to offer interest-like returns could pull deposits away from smaller institutions. On the other hand, some policymakers argue the risk is limited and that restricting yields wouldn’t significantly strengthen bank lending.
As talks resume, lawmakers are reportedly working on a compromise framework. Thom Tillis is expected to release a draft addressing the yield issue, which could help move negotiations forward.
Ripple Watching Regulatory Clarity
Garlinghouse also highlighted how regulatory clarity would benefit companies like Ripple. He pointed to the firm’s partnerships with financial institutions and its push to bridge traditional finance and blockchain infrastructure. According to him, passing the CLARITY Act would mark an important step toward clearer rules for the broader crypto market.
While timelines remain fluid, Garlinghouse suggested the bill could advance in the coming weeks if current negotiations hold.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
