Brad Garlinghouse, CEO of fintech and crypto firm Ripple, has declared a 90% chance that the long-debated Digital Asset Market Clarity Act (CLARITY Act) will pass by the end of April. This bold prediction, shared with media outlets this week, injects a sense of urgency and high anticipation into Washington’s ongoing crypto legislative efforts.
If his forecast holds, the CLARITY Act would represent the most significant federal legislation for the broader digital asset market, finally providing the much-needed regulatory structure that has long eluded the industry.
Ripple CEO Says 90% Chance CLARITY Act Could Pass By April
The CLARITY Act is widely seen as the crucial next step after the passage of the GENIUS Act in July 2025, which focused solely on stablecoins. CLARITY aims to tackle the far more complex issue of classifying the vast majority of cryptocurrencies. Its core tenet is to establish a clear distinction between digital assets that function as securities and those that operate as commodities.
This differentiation is critical because it dictates whether the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) holds primary jurisdiction over crypto designated as digital securities and digital commodities. The bill famously introduces a “secondary market rule,” proposing that even if a token was initially offered as a security, it could transition to a digital commodity once its native blockchain achieves sufficient decentralization. This provision, in particular, offers a potential lifeline to projects that have faced ongoing legal scrutiny from the SEC, including Ripple’s XRP.
Garlinghouse’s heightened confidence arrives amidst a flurry of behind-the-scenes activity in Washington. This week, a pivotal third round of meetings took place at the White House, bringing together key representatives from both the traditional banking sector and the burgeoning crypto industry.
White House Backs Activity Rewards in CLARITY Act Talks
These high-level discussions centered on resolving some of the more contentious aspects of the CLARITY Act, particularly around stablecoin yields. Sources close to the negotiations indicate a growing consensus on allowing “certain stablecoin yields,” but with a critical caveat: these yields would be permissible on specific types of collateral or through designated lending mechanisms, strictly not on customer deposits held by stablecoin issuers.
This is vital for protecting consumers while still allowing for innovative financial products that are integrated with digital assets, bridging the gap between traditional banking’s prudential concerns and crypto’s potential for earning yield.
The push for legislative clarity is not merely about appeasing the crypto industry; it’s increasingly viewed as a matter of national economic competitiveness. With the 2026 midterm elections looming, lawmakers from both sides of the aisle are feeling the pressure to demonstrate progress on an issue that has seen significant investment and job creation move offshore due to regulatory uncertainty.
The bill’s robust passage in the House last year, with a bipartisan vote of 294–134, underscored the broad recognition of the need for a definitive framework for digital assets. Its subsequent stall in the Senate Banking Committee highlighted the complexities and entrenched interests involved, but Garlinghouse’s comments suggest that these final roadblocks may be on the verge of being cleared.
If the CLARITY Act indeed becomes law by April, it would not only reshape the U.S. digital asset landscape but also send a powerful signal globally that the United States is ready to embrace and regulate the future of finance. The coming weeks will determine if Garlinghouse’s bold prediction becomes a defining moment for crypto in America.
