Ripple CEO Predicts CLARITY Act Approval by May 2026 Amid Stablecoin Yield Resolution

The passage of the CLARITY Act could establish a clearer regulatory framework for digital assets, influencing market stability and innovation.

• Brad Garlinghouse, CEO of Ripple, predicted the CLARITY Act will pass by the end of May 2026 during the Semafor World Economy Summit.
• Stablecoin yield disputes have stalled Senate progress since January 2026, but recent discussions indicate a resolution is near.
• The House passed the CLARITY Act in July 2025 with a bipartisan vote of 294-134, establishing a dual regulatory framework under the SEC and CFTC.

• The CLARITY Act was introduced on May 29, 2025, and aims to clarify the regulatory status of digital assets, which has been a contentious issue.
• Stablecoin yield provisions have created a divide between banks worried about deposit flight and crypto firms seeking to offer competitive yields.
• Senator Thom Tillis is working on a revised draft of the bill, which could facilitate its passage through the Senate Banking Committee.

The Digital Asset Market Clarity Act (CLARITY Act) represents a significant shift in how digital assets will be regulated in the U.S. Introduced in May 2025, the bill aims to create a dual regulatory framework under the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). This framework is designed to provide clarity for both traditional financial institutions and emerging crypto firms, which have often found themselves navigating a murky regulatory environment.

The act's journey has not been without hurdles. After passing the House with a strong bipartisan vote of 294-134 in July 2025, the bill faced a significant roadblock in January 2026 due to disagreements over stablecoin yield provisions. These provisions are critical as they determine how crypto firms can offer yields on stablecoins, which has become a popular financial product. Banks have expressed concerns that allowing crypto firms to offer competitive yields could lead to a flight of deposits from traditional banking systems, thereby destabilizing the financial landscape.

Garlinghouse's initial prediction of an 80% chance of passage by April 2026 was revised to the end of May after consultations in Washington, indicating a more cautious optimism. His comments at the Semafor World Economy Summit reflect a growing sentiment that frustrations over the stalled negotiations are leading to compromises. The involvement of key figures like Senator Thom Tillis, who is preparing a revised draft, suggests that there is momentum building toward a resolution.

As of mid-April 2026, the Senate Banking Committee has yet to schedule a markup for the bill, which raises concerns about potential delays that could push the timeline into 2027. However, the market has reacted positively, with XRP trading up 5% amid optimism surrounding the bill's prospects. Stakeholders in the crypto space are closely monitoring developments, particularly as the yield debate appears to be moving toward a resolution.

The implications of the CLARITY Act extend beyond regulatory clarity; they could also enhance the operational landscape for digital assets, particularly stablecoins. Ripple's RLUSD stablecoin, which has already received approval from the Dubai Financial Services Authority (DFSA) and Abu Dhabi Global Market (ADGM), could benefit from a clearer regulatory framework in the U.S. This alignment could facilitate smoother remittances and payments for residents in Dubai, leveraging the UAE's advanced stablecoin regulations.

• Crypto Firms: They will benefit from clearer regulations, allowing for more competitive offerings in the stablecoin market.
• Banks: Traditional financial institutions may need to adapt to new competition from crypto firms, impacting their deposit strategies.
• Investors: Individuals and institutions investing in digital assets will gain more confidence in the regulatory environment, potentially increasing market participation.
• Regulators: The SEC and CFTC will have to navigate the new framework, impacting their operational focus and resource allocation.

• Senate Banking Committee Markup: The scheduling of a markup will be a critical indicator of the bill's progress and could signal a timeline for potential approval.
• Stablecoin Yield Resolution: Any developments in the yield debate will directly impact the bill's passage and the operational capabilities of crypto firms.
• Market Reactions: Continued fluctuations in XRP and other digital asset prices will reflect investor sentiment regarding the CLARITY Act's prospects.