Former White House crypto adviser Bo Hines and Ripple CEO Brad Garlinghouse have both expressed optimism about the passage of the stalled crypto market structure bill, the CLARITY Act, as a critical end-of-month deadline approaches. The legislation, which aims to provide regulatory clarity for digital assets, has been delayed since mid-January due to a dispute between the crypto and banking industries over restrictions on stablecoin yield payments.
In an interview at the Digital Assets at Duke Conference, Bo Hines, CEO of Tether US and former executive director of the US President’s Council of Advisors for Digital Assets, stated he is “actually confident that CLARITY will get passed.” He described both industries as being “in the pressure cooker right now,” understanding that concessions are necessary to reach an agreement. The deadlock stems from banking industry concerns over deposit flight risk from stablecoin yields.
Ripple CEO Brad Garlinghouse echoed this sentiment, estimating an 80% chance the bill passes by the end of April. He urged the industry to accept a compromise, stating, “Let's not let perfection get in the way of progress.” Garlinghouse highlighted Ripple's advocacy for the bill, linking it to the company's legal journey with the SEC, and emphasized that the fortunes of Ripple are tied to the broader industry's regulatory clarity.
The window for passage is narrowing. Patrick Witt, the current executive director of the US President’s Crypto Council, warned the legislative window is “rapidly closing” as the midterm election campaign season approaches. US Secretary of the Treasury Scott Bessent also pressed lawmakers to advance the bill to President Donald Trump's desk before the spring legislative window closes, warning that chances could collapse if Democrats take control in November.
To break the impasse, the crypto industry has proposed compromises, including giving community banks a larger role in the stablecoin system. Hines also pointed to the Office of the Comptroller of the Currency's (OCC) recent issuance of conditional licenses to digital asset companies as a potential pathway to a resolution that protects banks while allowing for innovation.
