Ripple Labs CEO Brad Garlinghouse has publicly endorsed former President Donald Trump's recent statements urging action on the stalled CLARITY Act, injecting new political weight into the debate over U.S. crypto regulation. Garlinghouse's comments followed a Truth Social post from Trump, who accused major banks of slowing the bill's progress. "An extremely pointed message from Donald Trump to those dragging their feet on the CLARITY Act," Garlinghouse stated, adding, "This is, and always has been, about what’s in the best interest of the American people."
Simultaneously, Commodity Futures Trading Commission (CFTC) Chair Mike Selig has urged Congress to pass the CLARITY Act without delay, calling it "critical" for establishing a "future-proof digital asset market structure." Selig confirmed the CFTC is ready to implement the rules once approved. President Trump echoed this urgency, posting, "The U.S. needs to get Market Structure done, ASAP," and criticizing banking groups for holding up progress.
The CLARITY Act aims to define when a digital asset is a security versus a commodity, clarifying the regulatory boundaries between the SEC and CFTC. Supporters argue it will reduce uncertainty. Trump framed the legislation as a key step toward making the U.S. the "Crypto Capital of the World," warning that delays could allow global rivals like China to gain ground in digital finance innovation.
For Ripple, which has long advocated for clearer U.S. crypto rules amidst its own legal battles over asset classification, the bill is more than political—it could shape how companies operate, raise funds, and develop blockchain-based products domestically. Garlinghouse had previously estimated an 80% chance the Act would become law by April 2026, but the process has slowed, missing an informal March 1 deadline set by the Trump administration.
A major point of contention delaying consensus is the debate over stablecoin yield programs. Banking groups argue that crypto platforms offering yields on stablecoins could harm traditional financial institutions by drawing away deposits, while crypto advocates contend these programs foster innovation and expand user financial options. White House officials have held multiple meetings with industry representatives on this issue.
Industry reaction is mixed. Cardano founder Charles Hoskinson criticized the bill on X, calling it "horrific" for treating every crypto asset as a security by default and creating bureaucratic red tape. Conversely, Ripple CTO David Schwartz suggested a weaker law might be preferable to no framework at all. Market observers are awaiting the next congressional markup meeting this month, with JPMorgan analysts projecting the CLARITY Act could pass by mid-2026 if negotiations advance.
