CLARITY Act Gets Ripple’s Full Backing – CEO Says “Let’s Get It Done” as Senate Moves Bill Forward

May 14 could be one of the biggest days for crypto regulation in US history. The Senate Banking Committee is voting on the CLARITY Act. The full name is the Digital Asset Market Clarity Act. This bill would create the first complete federal rules for crypto in America.

Ripple CEO Brad Garlinghouse came out in favor of the bill before the vote. In a post on X, Garlinghouse praised the Senate Banking Committee for moving the bill forward and said millions of Americans already participate in crypto markets without having clear protections or rules.

“If the largest economy in the world is going to lead on crypto, and it must, this is the moment. Let’s get it done,” he wrote.

Momentum around the bill increased after reports that Senator John Kennedy plans to vote yes during the committee markup.

Top XRP advocate Diana on X reported that Senator Kennedy reached an agreement with Senate Banking Committee Chairman Tim Scott after negotiations tied to Kennedy’s “Build Now” housing proposal and revised fiduciary-duty language connected to crypto regulation.

That backing could be a big deal. One Republican could have killed the bill by himself. People filed more than 100 amendments before the vote. Bank lobby groups are still fighting parts of it.

The House passed H.R. 3633 back in July 2025. The vote was 294 to 134. Democrats and Republicans both said yes. Now the Senate markup is the next big test before the whole Congress votes.

Related Clarity Act News: ChatGPT Predicts Hedera (HBAR) Price If CLARITY Act Fails

What the CLARITY Act Would Change for Crypto

The CLARITY Act focuses on one issue the crypto industry has argued about for years: which digital assets fall under the SEC and which belong under the CFTC.

The bill creates a legal framework separating crypto securities from digital commodities. Bitcoin and similar decentralized assets would largely fall under the Commodity Futures Trading Commission. Tokenized securities and centralized offerings stay under SEC oversight.

The bill also lays out disclosure rules, compliance standards for exchanges, anti-money laundering requirements, and Know-Your-Customer rules. Stablecoins are included too. A bipartisan compromise added language blocking bank-style passive interest payments on payment stablecoins, though staking rewards and liquidity incentives remain allowed.

One of the most discussed parts of the proposal is a decentralization exemption. Crypto projects can raise up to $75 million over 12 months without full SEC registration. But the blockchain has to meet decentralization standards. The bill also caps restricted holders at 20 percent ownership. Projects get up to four years to prove their network is mature.

People who support the bill think this could end years of legal uncertainty that kept institutions on the sidelines. That matters for the XRP price and the broader altcoin market because many large financial firms avoided crypto products due to unclear federal rules.

Why Crypto Markets Are Watching Closely

Crypto investors see the CLARITY Act as a possible turning point for the industry in the US. The bill would finally write down legal definitions that exchanges, token issuers, and big money players have asked for years.

Supporters say clearer rules could bring more institutions in, get more tokens listed on exchanges, and stop the SEC from regulating through enforcement alone. That could affect assets across the board. The XRP price. Bitcoin. Ethereum. Major altcoins tied to US trading activity.

The Senate Banking Committee vote on May 14 does not make the bill law. But approval would push the legislation much closer to the finish line. For the crypto market, that makes tomorrow one of the most watched policy events of 2026.

Frequently Asked Questions

What is the CLARITY Act

The Digital Asset Market Clarity Act of 2025 (often called the CLARITY Act, H.R. 3633) is a U.S. bill introduced in the 119th Congress designed to establish a clear regulatory framework for cryptocurrencies. It aimed to define when digital assets are securities or commodities, dividing oversight between the SEC and CFTC to reduce regulatory ambiguity.

Will the CLARITY Act affect Bitcoin

Arthur Hayes says the US CLARITY Act will have little impact on Bitcoin. He maintains a $125,000 target for Bitcoin. Hayes warns AI-driven job losses could strain consumption and the banking system.5