“I Think We’re There”, Ripple CEO Brad Garlinghouse on CLARITY Act

Ripple CEO Brad Garlinghouse expressed strong optimism that the long-awaited CLARITY Act could pass soon. The ongoing standoff between banks and crypto representatives over stablecoin yields is nearing resolution, he signals at an event on Monday.

Ripple CEO Brad Garlinghouse Optimistic on CLARITY Act Passing

Speaking at the Semafor World Economy event on April 13, Ripple CEO Brad Garlinghouse talked about major progress on the CLARITY Act. He signaled negotiations between banks and crypto representatives, noting the Senate standoff is nearly at an end.

“When people are at their peak frustration, that’s when they finally compromise, and it gets done,” Brad Garlinghouse said on his optimism for the CLARITY Act passage. “I think we’re there,” he added.

Ripple CEO also discussed the company’s future and the global financial shift. Ripple has strategically partnered with financial institutions globally, with XRP and RLUSD helping bridge the gap between TradFi and the crypto industry.

Notably, he expects the CLARITY Act to pass by the end of May. This marks a shift from his earlier prediction of CLARITY Act passage by April-end amid a standoff between banks and crypto industry leaders over stablecoin yields.

Recent Progress on Stablecoin Yields Compromise Between Banks and Crypto

As CoinGape reported, the American Bankers Association criticized the White House report on stablecoin yields, stating that the study focused on the wrong question. They argue that yields on payment stablecoins would encourage deposit flight, especially from community banks.

The White House study on stablecoin yields stated that a ban on stablecoin yields will do little to boost bank lending. They also addressed deposit flight risk, noting that concerns over this are “quantitatively small.”

The CLARITY Act has faced delays primarily due to disagreements over stablecoin yields. Banks raised concerns over crypto platforms offering rewards or interest-like returns on stablecoin. Recently, Treasury Secretary Scott Bessent urged the Congress to pass the crypto market structure bill. He warns that time is running out to provide regulatory clarity to the crypto industry.

Senator Thom Tillis could release the stablecoin yield draft agreement soon to resolve the standoff between banks and crypto. US Senate set to resume CLARITY Act talks this week, boosting regulatory clarity hopes.