Ripple CEO Brad Garlinghouse has shared a hopeful outlook regarding the CLARITY Act, predicting an 80% chance of its passage by the end of April. The crypto bill, which aims to provide clearer regulations for the crypto industry, has seen significant pushback but also constructive discussions between crypto firms and banking institutions.
In a recent interview, Garlinghouse emphasized that while the CLARITY Act, as currently written, might not be perfect, its passage would be a major step forward for the crypto space. “Let’s not let perfection get in the way of progress,” he stated, stressing that clarity on crypto regulation is essential for the industry’s future growth.
Stablecoin Yield Provision at the Heart of the CLARITY Act
A major sticking point in the discussions surrounding the CLARITY Act has been the stablecoin yield provision. This provision has caused some friction between crypto companies, particularly exchanges like Coinbase, and lawmakers. Coinbase famously withdrew its support for the bill after failing to reach a consensus on the stablecoin yield provision.
This disagreement has stalled the bill’s passage since January. Despite the deadlock, Garlinghouse remains optimistic, calling on the industry to accept a compromise instead of holding out for a perfect bill. He believes that continued negotiations between banks and crypto firms will lead to an agreement on the provision.
In the face of the ongoing stalemate, Ripple’s CLO Stuart Alderoty has also expressed hope for progress. He believes that the negotiations between the crypto industry and financial institutions are moving forward, signaling that a resolution could be imminent.
White House Urges Deadline for Resolution
As the clock ticks down on the deadline for the crypto bill, the White House has set February as a critical month for resolving the outstanding issues, particularly the stablecoin yield provision. This push comes as part of a broader effort to reach an agreement between crypto firms and banks, aiming for clarity on how stablecoins will be treated under the law.
According to U.S. Treasury Secretary Scott Bessent, passing the bill would provide “great comfort to the market” amid ongoing volatility. Bessent highlighted the importance of having clear federal regulations for digital assets, especially in times of uncertainty. The deadline also underscores the urgency of finalizing the CLARITY Act, which would bring much-needed regulation to the crypto space.
Future of the CLARITY Act
Despite challenges, Garlinghouse is optimistic that the CLARITY Act will see the light of day by April. He has stated that an 80% chance of passage reflects the positive momentum that has built up between banks and crypto firms in recent discussions. This includes ongoing talks at the White House, where industry leaders continue to negotiate a compromise.
However, the timeline could be impacted by the broader political landscape. Bessent warned that if Democrats take control of the House in November, the coalition pushing for the bill’s passage could collapse, further delaying the legislative process. This makes the next few months crucial for the success of the CLARITY Act, as both lawmakers and industry leaders strive to reach an agreement on the bill’s key provisions.
In the meantime, Polymarket traders are pricing in a 62% chance of the bill’s passage following another round of meetings set for later this week. This reflects the growing sense of optimism that a breakthrough is possible, despite the hurdles that remain.
Source: https://coinpaper.com/14686/clarity-act-news-brad-garlinghouse-forecasts-80-signing-chance-in-70-days
