Brad Garlinghouse Projects Clarity Act Will Get Signed by Late April

Ripple’s leadership is signaling optimism about the Digital Asset Market Clarity Act’s chances of passage, with a concrete timeline emerging from recent industry negotiations. The CEO has offered a decisive forecast on when the longstanding legislative effort could finally move from the Senate floor to the President’s desk.

CEO’s 80% Confidence on Clarity Act Passage

Ripple CEO Brad Garlinghouse recently disclosed that he believes there is an 80% probability the Clarity Act will get signed into law by the end of April. Speaking in mid-February, Garlinghouse emphasized that the crypto industry should embrace the legislation even if certain provisions aren’t perfect. “I think it’s so clear that clarity is better than chaos,” the Ripple CEO stated, arguing that imperfect legislation is still preferable to regulatory ambiguity.

Garlinghouse drew a parallel to Ripple’s own seven-year legal battle with the SEC, which ultimately provided the clarity that “XRP is not a security”—a precedent he cited as evidence that even drawn-out processes can yield important industry guidance. He framed the Clarity Act through a similar lens: progress should be prioritized over perfection.

The Stablecoin Rewards Standoff Blocking Progress

The primary obstacle preventing Senate passage has become increasingly clear: a sharp disagreement over stablecoin reward provisions. The legislation, which passed the House in July 2025, aims to create a unified regulatory framework by clarifying which digital assets fall under the Securities and Exchange Commission’s jurisdiction and which belong to the Commodity Futures Trading Commission’s domain.

However, the bill includes a controversial provision that would prohibit cryptocurrency platforms from offering rewards to users who hold stablecoins. The banking sector strongly backs this restriction, viewing stablecoin rewards as a competitive threat. Platforms like Coinbase, which had initially supported the bill, have grown skeptical of this component, with CEO Brian Armstrong stating last month that “we’d rather have no bill than a bad bill” if this provision remains.

Banking Industry’s $500 Billion Deposit Drain Fear

Banks fear losing significant deposits to stablecoin platforms because exchange-offered rewards substantially exceed traditional savings account interest rates. Digital dollars like Tether’s USDT, Circle’s USDC, and Ripple’s RLUSD—each pegged 1:1 to the U.S. dollar—have become attractive alternatives to conventional bank deposits.

Standard Chartered’s global head of digital assets research, Geoff Kendrick, warned that if the stablecoin market reaches $2 trillion, developed economy banks could see approximately $500 billion in deposits drain by the end of 2028. U.S. Treasury Secretary Scott Bessent has acknowledged this concern, noting that if deposits migrate out of banks, lending to small businesses, agriculture, and real estate development would face new constraints.

Crypto Platforms Counter Banking Industry Opposition

The cryptocurrency industry pushes back against the banking sector’s position, characterizing the resistance to stablecoin rewards as anti-competitive gatekeeping. The industry argues that preventing platforms from offering rewards represents unfair market protectionism rather than legitimate regulatory concern.

Coinbase’s withdrawal of support highlighted the depth of this divide. The largest U.S. crypto exchange signaled it would rather see the entire legislative effort fail than accept what it views as a one-sided provision favoring traditional financial institutions. This stance put pressure on other industry players to reassess their positions on the bill.

White House Push Brings Industry to Negotiation Table

The White House has become actively involved in bridging the divide between the banking and crypto sectors. Ripple has emerged as a key player in these behind-the-scenes negotiations, with Brad Garlinghouse advocating for compromise from the crypto industry’s side.

President Donald Trump has also weighed in, suggesting the bill is close to passage. Treasury Secretary Bessent expressed frustration with what he called “recalcitrant actors” resisting compromise, while assuring the banking community that mechanisms would be implemented to prevent deposit volatility. Bessent indicated the legislation could move “across the line this year,” providing a political tailwind to ongoing negotiations.

Timeline Clears as Industry Inches Toward Compromise

With Brad Garlinghouse’s 80% confidence projection anchored to an end-of-April deadline, the negotiation window appears to be narrowing. The Ripple CEO’s timeline suggests that if current momentum continues, both sectors may reach a workable compromise within the next several weeks.

The April deadline represents a critical juncture: agreement by that point would allow the Senate to move forward with passage before the legislative calendar potentially gets consumed by other priorities. For the crypto industry, obtaining the regulatory clarity that the Act provides remains essential, even if the stablecoin reward provision requires further revision.

Garlinghouse’s public timeline may also serve as a marker for industry observers tracking whether negotiators can bridge their remaining differences before the window closes. The next several weeks will prove whether the current trajectory leads to legislative passage or whether the Clarity Act remains stalled in Senate chambers.