Ripple CEO Supports Push to Advance CLARITY Act in Congress

TLDR

• Brad Garlinghouse supported efforts to advance the CLARITY Act in Congress.
• Treasury Secretary Scott Bessent urged lawmakers to finalize crypto regulations.
• SEC Chair Paul Atkins confirmed readiness to implement the legislation.
• Disputes over stablecoin yield rules continue to delay the bill.
• A White House report found a limited impact of yield bans on bank lending.

U.S. policymakers renewed efforts to advance digital asset legislation as industry leaders voiced support for action. Ripple CEO Brad Garlinghouse backed calls to move the CLARITY Act forward. Officials urged Congress to finalize a federal framework and send the bill to President Donald Trump.

CLARITY Act Gains Momentum in Washington

Brad Garlinghouse publicly supported Treasury Secretary Scott Bessent’s call for legislative progress on digital assets. He shared Bessent’s message on X and stated, “Progress  Perfection,” while backing the CLARITY Act.

Bessent urged Congress to act after years of regulatory debate. He said the current system lacks clarity and slows domestic crypto development.

He stated that clear federal standards would help retain investment and innovation within the United States. He also emphasized the need for defined compliance rules.

SEC Chair Paul Atkins supported the legislative effort and confirmed readiness to implement the framework. He stated, “Project Crypto is designed so once Congress acts, agencies are ready.”

Atkins agreed with Bessent and called for Congress to send the bill to President Donald Trump. He stressed the importance of advancing market structure legislation quickly.

The House of Representatives passed its version of the bill in July. However, lawmakers have not finalized key provisions.

Disagreements over stablecoin-related rules have slowed progress in Congress. These disputes have delayed further legislative movement.

Debate Over Stablecoin Yield Rules Continues

Lawmakers continue to debate whether the CLARITY Act should restrict stablecoin yield offerings. Banking groups support stricter limits on returns linked to stablecoins.

They argue such measures would protect traditional bank funding structures. They want restrictions on exchanges, brokers, and affiliated platforms.

Crypto firms oppose broader restrictions and prefer limits aligned with existing stablecoin laws. They argue new rules should not extend beyond current frameworks.

The debate focuses on a three-party model where non-issuers offer reward-like returns. Critics claim this structure creates regulatory gaps.

A White House report added data to the discussion on April 8. The Council of Economic Advisers released the findings.

The report stated that a broad yield ban would have minimal impact on bank lending. It projected only a $2.1 billion increase, or 0.02%.

Around 76% of projected gains would benefit large banks. Community banks would gain about $500 million in lending capacity.

The report also tested higher estimates favoring the banking sector. Under those conditions, lending could increase by $531 billion.

This figure represents about 4.4% of projected loan volumes for late 2025. Community banks could see gains of up to 6.7%.

The report concluded that yield restrictions would offer limited protection for bank lending. It stated that such policies could reduce consumer benefits.

Garlinghouse’s support increased visibility for the legislative push. His statement reinforced the industry’s focus on passing the bill.

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