Key Highlights
- Brad Garlinghouse says the CLARITY Act could give clear rules for crypto in the U.S.
- The bill is delayed because banks and crypto companies don’t agree on stablecoin rewards.
- XRP traders are watching closely because clear regulations could reduce uncertainty and help support a possible XRP price rally.
XRP traders are all hyped up as Ripple CEO Brad Garlinghouse predicts an 80% chance that the CLARITY Act will pass Congress by the end of April 2026.
The proposed legislation aims to clearly explain which digital assets are controlled by the U.S. Securities and Exchange Commission (SEC) and which are managed by the Commodity Futures Trading Commission (CFTC). Garlinghouse shared his outlook on February 19 after talks with the White House officials and financial leaders.
The proposal has been delayed mainly because the crypto and banking industries are debating stablecoin reward rules.
Clear regulation could boost market confidence
Garlinghouse noted that both sides are now closer to a compromise and encouraged them to work together. He said, “Clarity is better than chaos,” pointing to Ripple’s past legal fight with the SEC as an example of why clear rules are important. Lawmakers and industry leaders are still working on the final points in Washington, and pressure is growing to pass the bill before the 2026 midterm elections.
The CLARITY Act aims to give clear rules so exchanges, token issuers, and developers know exactly how to operate. Experts say that clear rules could keep money in the U.S. instead of moving to other countries. The main reason for the delay is disagreement over stablecoin rewards.
Banks worry that if crypto platforms offer high rewards, users might move their money out of their bank accounts into stablecoins like Tether (USDT), Circle (USDC), or Ripple (RLUSD), which are all pegged 1.1 to the U.S. dollar. Some crypto firms, including Coinbase, even pulled their support from the bill. Coinbase CEO Brian Armstrong, in a previous report, said, “We’d rather have no bill than a bad bill.”
Meanwhile, top U.S. officials like Treasury Secretary Scott Bessent warn that if deposits shift into crypto rewards, banks might struggle to lend money to small businesses, farmers, and real estate projects. President Donald Trump has also mentioned that the bill is close to passing, highlighting the importance of finalizing the crypto regulation.
XRP retests key resistance level
The remark comes as XRP traders hope for a rally soon. The token is down a modest 2.05% today after rejecting a key resistance level. Currently, XRP has been consolidating between $1.09 and $1.67 for days, looking for enough momentum to break the $1.49 support turned resistance zone.
Meanwhile, trading activity in the last 24 hours is up by 35%, reaching about $2.58 billion in trading volume, while its market cap sits at $86.1 billion, according to CoinMarketCap. The Relative Strength Index (RSI) is at 38.50, while the moving average is at 37.33.
This is shortly after the price hit an oversold condition on Feb 5. Current price action suggests that sellers are still controlling the market. However, the moving average is trading in uptrends.
Repeat of the 2017 fractal
Social media is having a wild buzz on price predictions, with a user like CryptoBull saying the next price targets will be $8, $49, and $400 if XRP repeats the 2017 fractal. Another user, Dark Defender, notes that XRP has been proceeding in an ascending trend channel since 2017. Their analysis highlights that a double bottom pattern is intersecting the Fibonacci level. Giving out a highly optimistic target of $18.
Moreover, users like Crypto X AiMan say the current news changes EVERYTHING for $XRP holders. While these may look highly optimistic, this is not the first time XRP traders have come up with such high projections. The chances of XRP price rallying toward such huge targets are highly unlikely.
Also Read: XRP Ledger Turns On Permissioned DEX, Enabling Trading on Mainnet
