Ripple CEO Brad Garlinghouse told a crypto conference on Tuesday that the CLARITY Act market structure bill is not a done deal, even after a recent stablecoin compromise. Speaking at the Consensus event in Miami, he said the next two weeks will decide its fate.
CLARITY Act Market Structure Bill Faces Tight Timeline
Garlinghouse warned that the bill’s chances of passing would drop sharply if not addressed within two weeks. He pointed to the 2026 US midterm elections as a major obstacle. Primaries are already underway. Campaigns will make the bill too politically charged.
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“Do I think it’s perfect? Hell no,” Garlinghouse said. “I challenge you to show me any piece of legislation that we would call perfect. There’s tradeoffs and compromises, but I do think clarity is better than chaos.”
The bill, formally called the CLARITY Act, passed the US House of Representatives in July 2025. It has since stalled in the Senate. The Senate Agriculture Committee advanced it in a January markup. But it still needs approval from the Senate Banking Committee before a full chamber vote.
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Stablecoin Compromise Opens Door for Progress
Last week, US Senators Thom Tillis and Angela Alsobrooks announced a compromise on stablecoin yield. This move could break the logjam. Stablecoins, along with tokenized equities and ethics rules, have held up the bill since the House passed it.
Industry watchers note that the stablecoin compromise is a positive sign. But it does not guarantee passage. The bill still faces significant hurdles in the Banking Committee.
Garlinghouse and other Ripple executives have been part of negotiations between the White House, crypto firms, and banking representatives. Their involvement shows the high stakes for the industry.
Senator Lummis Calls CLARITY Act the Priority
Senator Cynthia Lummis, a member of the Senate Banking Committee, posted on X on Tuesday: “The Clarity Act is not a future priority; it is the priority. Every corner of the industry is operating under legal uncertainty that Congress has the power to fix. The Senate needs to act.”
Her statement underscores the urgency. The crypto industry has long complained about unclear rules. The CLARITY Act aims to provide a clear regulatory framework for digital assets.
But the bill’s future remains uncertain. The two-week window Garlinghouse described is tight. If the Senate fails to act, the legislation could be delayed until after the midterms. That could mean another year or more of uncertainty.
US Financial Agencies Move Forward Without Congress
While Congress debates, federal agencies are taking their own steps. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) signed a memorandum of understanding in March. They agreed to coordinate oversight of digital asset market structure.
SEC Chair Paul Atkins said the agency’s approach to crypto laws provides a “beginning, not an end.” He said the commission is awaiting passage of the CLARITY Act. This suggests the SEC sees the bill as essential for its work.
The implication is clear: without congressional action, the regulatory patchwork will continue. Agencies will fill the gap as best they can. But industry players want clear, unified rules.
What This Means for Crypto Investors and Firms
For crypto companies, the CLARITY Act’s fate matters directly. Clear rules could reduce compliance costs and legal risks. Uncertainty, on the other hand, discourages investment and innovation.
Data from industry groups shows that US crypto firms have faced increasing regulatory pressure. Many have moved operations overseas. The bill could reverse that trend.
But Garlinghouse’s warning suggests the window is closing fast. If the bill fails now, it may not resurface until 2027. That would be a major setback for the industry.
Political Dynamics and Midterm Campaigns
The 2026 midterms are a key factor. Primaries are ongoing. Candidates are wary of taking controversial votes. The CLARITY Act, which touches on stablecoins, tokenized assets, and ethics, is a loaded issue.
Garlinghouse noted that the bill would become too politically charged once campaigns heat up. This suggests that lawmakers may avoid a vote until after the elections. But waiting until 2027 could mean starting from scratch.
Conclusion
The CLARITY Act market structure bill faces a make-or-break moment. Ripple CEO Brad Garlinghouse warns that the next two weeks are critical. A stablecoin compromise has opened the door, but political obstacles remain. The crypto industry is watching closely. Clear rules could transform the market. But if the bill stalls, uncertainty will persist. The Senate must act soon.
FAQs
Q1: What is the CLARITY Act?
The CLARITY Act is a US bill that aims to create a clear regulatory framework for digital assets, including stablecoins and tokenized equities.
Q2: Why did Ripple CEO Brad Garlinghouse say the bill is not a done deal?
Garlinghouse warned that the bill faces a tight timeline before the 2026 midterms. Political campaigns could make it too controversial to pass.
Q3: What was the stablecoin compromise?
Senators Thom Tillis and Angela Alsobrooks announced a deal on stablecoin yield rules. This removed a key obstacle to advancing the CLARITY Act.
Q4: What happens if the CLARITY Act does not pass soon?
The bill could be delayed until after the 2026 midterms, potentially until 2027. This would prolong regulatory uncertainty for the crypto industry.
Q5: How are US financial agencies responding without the bill?
The SEC and CFTC signed a memorandum of understanding in March to coordinate crypto oversight. But they say they need the CLARITY Act for full clarity.
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