Ripple CEO Brad Garlinghouse Sees ‘80% Chance’ of CLARITY Bill Passing by April, Signaling Potential Regulatory Breakthrough for Crypto
February 20, 2026 — In a significant development for the cryptocurrency industry, Ripple’s CEO Brad Garlinghouse expressed strong optimism about the passage of the long-awaited CLARITY Act, predicting an 80% probability that the bill will become law by the end of April. Garlinghouse’s comments highlight growing momentum within Washington, D.C. to establish clearer regulatory guidelines for digital assets, a move widely anticipated to foster innovation and stability in the sector.
Renewed Legislative Momentum
Speaking on Fox Business, Brad Garlinghouse credited recent renewed engagement between lawmakers, the White House, and key industry stakeholders—including both cryptocurrency firms and traditional financial institutions—for the bill’s accelerated progress. The discussions in Washington indicate heightened political will to resolve the protracted debate surrounding cryptocurrency regulation after months of delays.
The CLARITY Act aims to resolve foundational regulatory uncertainty by distinctly categorizing which digital assets fall under securities laws enforced by the Securities and Exchange Commission (SEC) and which are regulated by the Commodity Futures Trading Commission (CFTC). This distinction has been a persistent source of confusion, hampering both innovation and market confidence.
What the CLARITY Act Entails
The legislation would comprehensively clarify the oversight landscape for digital assets. A key point of contention has been the treatment of stablecoins and the permissibility of platforms offering yield or reward incentives akin to interest payments. Negotiations are reportedly being pushed forward with a target deadline around March 1 set by the White House, signaling urgency to bring the bill to a vote.
While Garlinghouse acknowledged the Act is not perfect, he emphasized its necessity. Ripple itself has benefited from a favorable federal court ruling that XRP—its flagship cryptocurrency—is not classified as a security. However, such clarity remains absent for much of the industry, contributing to regulatory limbo that Garlinghouse argues has “weighed on innovation and market sentiment.”
Ripple’s Strategic Position Amid Regulatory Flux
Despite recent volatility and a broader pullback in the crypto markets, Ripple continues to see growing interest from corporate treasurers and financial institutions seeking to leverage stablecoins, liquidity management tools, and cross-border payment solutions. Since 2023, Ripple has invested nearly $3 billion in acquisitions spanning custody services, prime brokerage, and treasury management.
Garlinghouse noted that Ripple plans to pause major acquisitions in the near term to focus on integrating its expanded portfolio, underscoring the company’s commitment to building a robust infrastructure aligned with clearer regulatory frameworks.
Industry-Wide Implications and Outlook
Garlinghouse highlighted a notable shift in sentiment, as traditional financial institutions increasingly seek clear rules to compete fairly in the evolving digital asset space. This change reflects broader acceptance and recognition of cryptocurrencies’ transformative potential over recent years.
If enacted, the CLARITY Act could mark one of the most significant legislative milestones for the U.S. crypto sector, potentially unlocking greater mainstream adoption and fostering innovation. Supporting this outlook, prediction markets such as Polymarket currently assign an 82% chance of the bill passing by the end of 2026. —
Broader Crypto Regulatory Landscape
This legislative push comes amid other important regulatory updates, including moves by the SEC to adjust rules around broker-dealers’ stablecoin holdings, which could influence capital requirements and increase stablecoin utilization in traditional finance.
As policymakers and industry leaders converge on these critical issues, the cryptocurrency ecosystem awaits clearer guardrails that could define its growth trajectory for years to come.
For more updates on cryptocurrency regulation and Ripple’s ongoing developments, stay tuned to CoinDesk.
Related Reading
- SEC Advances Changes to Broker-Dealer Stablecoin Capital Rules
- Ripple’s Acquisition Spree: Millions Invested in Crypto Infrastructure
- Federal Court Rules XRP Is Not a Security: What It Means for Crypto
Published by Shaurya Malwa, Edited by Sam Reynolds, CoinDesk, February 20, 2026.