Ripple CEO warns CLARITY Act risks failing in two weeks

Brad Garlinghouse, chief executive of Ripple Labs, said at the Consensus crypto conference in Miami on Tuesday that the CLARITY Act is not guaranteed to become law. He warned the bill’s prospects would “drop precipitously” if outstanding issues are not resolved within two weeks.

The legislation, passed by the House in July 2025, has stalled in the Senate over differences on stablecoin yields, tokenized equities and ethics rules. The Senate Agriculture Committee advanced the bill in a January markup, but it still requires approval from the Senate Banking Committee before reaching the full Senate for debate and a vote.

Senators Thom Tillis and Angela Alsobrooks announced a compromise last week addressing how yields on stablecoin accounts would be treated. That agreement could remove one of the major points of contention holding up the measure.

Garlinghouse acknowledged the bill is imperfect and used blunt language to make his point: ‘Do I think it’s perfect? Hell no. I challenge you to show me any piece of legislation that we would call perfect.’ He added that legal clarity for digital assets is preferable to leaving market participants without clear rules.

Executives from Ripple have participated in discussions involving the White House, industry groups and banking representatives as lawmakers work to finalize the framework. Senator Cynthia Lummis, a member of the Senate Banking Committee, posted on social media that ‘The Clarity Act is not a future priority; it is the priority,’ calling on the Senate to act to remove legal uncertainty for the crypto industry.

Regulators have adjusted their approaches while Congress debates the bill. The Securities and Exchange Commission and the Commodity Futures Trading Commission signed a memorandum of understanding in March to coordinate oversight of the digital-asset market. SEC Chair Paul Atkins described the agency’s regulatory approach as ‘a beginning, not an end,’ and said the commission is awaiting congressional action on the CLARITY Act.

If the Senate Banking Committee advances the bill, it would go to the full Senate for debate and a vote. Lawmakers face competing political calculations with ongoing primaries and the 2026 midterm elections. Garlinghouse’s comments highlighted the narrow window for negotiators to resolve remaining disputes and secure enough votes for passage.