White House Push Lifts CLARITY Act Chances to 90%, Says Ripple CEO

• Ripple CEO Brad Garlinghouse sees a 90% chance for the CLARITY Act to by April.
• A March 1 deadline to resolve stablecoin reward rules is driving urgent negotiations.
• The main dispute remains stablecoin yield, with banks pushing for bans.

Ripple CEO Brad Garlinghouse now puts the chances of the CLARITY Act passing by the end of April at 90%. He said momentum increased after recent White House meetings with leaders from crypto firms and banks.

Earlier estimates had placed the timeline as optimistic, but ongoing negotiations have strengthened confidence.

March 1 Deadline

The White House has set a March 1 deadline to resolve disputes around stablecoin rewards. Treasury Secretary Scott Bessent has urged Congress to move forward this spring.

The administration has hosted multiple closed-door meetings between crypto companies and banking groups. The third session took place Thursday and lasted several hours. Officials are pushing for an agreement on the final issues blocking the bill.

The CLARITY Act aims to define crypto market rules and split oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The House passed a version of the bill last July, but the Senate version remains stalled.

Stablecoin Yield Dispute Remains Main Block

The main disagreement centers on whether stablecoin issuers and platforms should offer yield or rewards to users. Banks argue that yield payments could pull deposits away from traditional institutions, especially community banks.

Crypto firms say strict limits would slow innovation and reduce competition. Some lawmakers and banking groups want a full ban on rewards for holding stablecoins. 

Crypto companies support a different approach. They want regulators to separate interest payments from usage-based rewards. Industry representatives argue that rewards for using stablecoins should be treated like credit card incentives rather than deposit interest.

The issue has already affected industry support. Coinbase withdrew backing for an earlier draft over yield restrictions. At the same time, a separate stablecoin law passed last summer bars issuers from paying direct interest but allows third-party platforms to offer rewards.

Related: Bessent Pushes CLARITY Act as Stablecoin Talks Show Progress

Negotiations Show Progress but No Deal Yet

Participants in the latest White House meeting described discussions as constructive and cooperative. Officials reviewed specific legislative language and discussed possible principles that could allow companies to offer rewards for certain activities, including account balances.

Despite progress, no final compromise emerged. The next step depends largely on banking groups, and talks are expected to continue in the coming days. Attendees in recent meetings included Ripple, Coinbase, the Blockchain Association, the Crypto Council for Innovation, and major bank trade groups.

Coinbase CEO Brian Armstrong said negotiations have made major progress and only a few issues remain. He said Senate lawmakers are meeting frequently to move the bill forward and described a path toward an outcome that supports crypto firms, banks, and consumers.

Related: Coinbase Loss, Clarity Act Delay Highlight Strains Between Crypto Firms and Banks