Key Highlights
- Ripple CEO Brad Garlinghouse said the company is neutral on the Clarity Act and is not actively supporting or opposing it.
- XRP is already recognized as a commodity by the SEC and CFTC, giving Ripple some legal clarity.
- Garlinghouse criticized the large number of USD-backed stablecoins and said Ripple could issue its own compliant stablecoin.
Brad Garlinghouse, the CEO of Ripple Labs, stated the company is not taking sides on the Digital Asset Market Clarity Act.
During his appearance at the FII PRIORITY Miami Summit on Thursday, he said the White House supports the bill, which has helped it move forward. Even though the U.S. Senate has delayed discussions and crypto exchange Coinbase rejected a recent compromise, Garlinghouse expects the law to pass by May 31, 2026.
“Ripple doesn’t have a big dog in this fight and so we have kind of on this particular point let people who care more deeply about it fight……I’ll predict by the end of May we’ll get something across,” he said.
Garlinghouse says XRP already has legal clarity
Garlinghouse pointed out that XRP, the native token of Ripple, already has some legal clarity because it has been officially recognized as a commodity by both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Commodities are assets such as gold or oil that are regulated under specific government rules. This recognition, he said, is important for Ripple’s long-term planning.
He also addressed stablecoins, stating there is no need for dozens of U.S. dollar-backed tokens, as having too many can create confusion. He noted that Ripple once minted about 20% of the USDC supply, a stablecoin managed by Circle.
Because of this experience, Garlinghouse said the company could create its own stablecoin for large companies like banks and investment firms. He added that the crypto industry should show more transparency, especially about the money backing stablecoins, to build trust in the market.
Clarity Act timeline amid ongoing negotiations
Garlinghouse had earlier predicted that the Clarity Act could pass by April 30, but he revised the timeline as lawmakers from both political parties are still negotiating.
Meanwhile, Senator Cynthia Lummis, a Republican from Wyoming who supports crypto-friendly laws, said cross-party agreement is still needed. She noted that efforts are being made to protect stablecoin rewards and prevent deposits from leaving community banks.
Despite the delay, the political environment, including support from the White House, favors the Act’s eventual passage.
The Clarity Act is meant to make rules for digital assets clear for companies and investors in the U.S., so they know what is allowed. By staying neutral, Ripple can follow the law while watching how rules develop, without taking a public side in the debate.
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