Why Brad Garlinghouse Continues to Support the CLARITY Act
During XRP Las Vegas, Ripple CEO Brad Garlinghouse expressed confidence that the CLARITY Act will be passed by the end of May. This is his third public deadline for the bill, having initially estimated an 80% chance of passage in April during a Fox Business interview in February, and then adjusting to May at two subsequent industry events.
Summary
- Garlinghouse originally indicated there was an 80% chance of the bill passing in April on Fox Business on February 19, later adjusting the deadline to the end of May during the FII Priority Miami Summit on March 27, and reaffirming this during the Semafor World Economy Summit on April 13.
- He noted that the stablecoin yield issue, which has held up the bill since January, is nearing resolution. He believes that the current frustration in Washington often signifies that compromises are about to be reached.
- Senator Thom Tillis has announced plans to ask Banking Committee Chairman Tim Scott to schedule a markup when the Senate reconvenes on May 11, with a committee vote potentially occurring later that same week.
Brad Garlinghouse reiterated his end-of-May timeline for the CLARITY Act at XRP Las Vegas on April 30, three months after first estimating an 80% likelihood of April passage during his Fox Business appearance. Disruption Banking reported that Garlinghouse is optimistic that the bill will navigate through the Senate Banking Committee, successfully clear the Senate, and reach Trump’s desk before the Memorial Day recess on May 21. “When people are at their peak of frustration, that’s when they finally compromise, and it gets done. I think we’re there,” Garlinghouse stated.
As reported by crypto.news, the 2030 deadline isn’t just Garlinghouse’s view—Senator Cynthia Lummis indicated on X in April that this represents “our last chance to pass the Clarity Act until at least 2030.” Senator Bernie Moreno has echoed similar sentiments. Both senators emphasized that the current conducive alignment of the House, Senate, and White House on crypto legislation is rare and may not persist through the midterm elections. Garlinghouse’s updates are not contradictions; as the bill has missed various deadlines, its backing has only strengthened. The coalition supporting the bill has grown to over 120 companies including Ripple, Coinbase, Kraken, and Andreessen Horowitz. As documented by crypto.news, these companies sent a joint letter on April 23 urging an immediate markup.
The stalemate over stablecoin yields—debating whether third-party platforms can provide rewards on stablecoin balances—has largely been resolved, according to Garlinghouse, following a report from the White House CEA revealing that a full yield ban could impose an $800 million cost on consumers annually. However, a scheduling issue remains: the Senate reconvenes on May 11, the Memorial Day recess starts on May 21, and Chairman Tim Scott has yet to set a markup date. As tracked by crypto.news, Polymarket estimates a 46% chance of passage by 2026, Galaxy Research gives a 50-50 chance, and TD Cowen estimates one-in-three—making Garlinghouse’s end-of-May prediction significantly stand out against these market assessments.