Ripple’s Brad Garlinghouse states that the CLARITY legislation has a ‘90% likelihood’ of being approved by April.

The bill aims to specify which digital assets are governed by securities law versus those under the jurisdiction of the Commodity Futures Trading Commission.

Key points:

• Ripple CEO Brad Garlinghouse indicated that he currently perceives a 90 percent likelihood that the long-discussed Clarity Act will be enacted by the close of April, attributing this to renewed energy in Washington.
• The legislation aims to delineate which digital assets are categorized under securities laws as opposed to those regulated by the Commodity Futures Trading Commission, addressing enduring regulatory ambiguity that Garlinghouse states has hindered innovation.
• Ripple, which has invested close to $3 billion in acquisitions since 2023 and is presently halting significant deals to concentrate on integration, contends that both crypto companies and traditional financial entities increasingly seek clear regulations as perspectives on digital assets evolve.

Ripple CEO Brad Garlinghouse mentioned that he now perceives a 90% chance that the long-discussed Clarity Act will be enacted by the end of April, reflecting a growing confidence within the crypto sector that U.S. legislators may eventually provide the long-desired regulatory clarity.

In an interview with Fox Business, Garlinghouse noted that momentum has increased due to renewed engagement from lawmakers and the White House. He referenced recent discussions in Washington that included representatives from both the crypto industry and conventional banking, implying that the political will to advance legislation has strengthened following months of stagnation.

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The Clarity Act is intended to clarify which digital assets are subject to securities regulations and which will come under the supervision of the Commodity Futures Trading Commission. The proposal has encountered obstacles regarding stablecoin reward provisions and whether crypto platforms may offer yield-like incentives to their customers. The White House has set a target date of March 1 to advance negotiations.

Garlinghouse characterized the bill as flawed yet essential. He emphasized that Ripple secured a federal court ruling indicating that XRP is not classified as a security, providing the company with clarity that much of the sector still lacks.

“The industry cannot remain in limbo,” he stated, asserting that regulatory ambiguity has adversely affected innovation and market sentiment.

His remarks occur amid a wider downturn in the crypto market and renewed volatility in digital assets. While bitcoin and other cryptocurrencies have faced difficulties in recent weeks, Garlinghouse noted that Ripple continues to experience increasing interest from corporate treasurers and financial institutions looking into stablecoins, liquidity management, and cross-border transactions.

Ripple has expended nearly $3 billion on acquisitions since 2023, broadening its reach into custody, prime brokerage, and treasury management. Garlinghouse mentioned that the company will pause on significant deals in the short term to prioritize integration.

Beyond crypto-native entities, he remarked that traditional financial actors increasingly desire clearer regulations to compete on an equal basis. This change, he suggested, mirrors the substantial shift in perspectives regarding digital assets over recent years.

If the Clarity Act progresses, it could represent one of the most important legislative achievements for the U.S. crypto sector to date.

Polymarket bettors are estimating an 82% likelihood of the bill passing by the end of the year.