Ripple CEO Sends Urgent Warning as Clarity Act Hangs by a Thread

• Banks urged to act as Clarity Act negotiations intensify
• Stablecoin dispute threatens fragile bipartisan crypto legislation progress
• Industry divisions widen as lawmakers race toward April deadline

Ripple CEO Brad Garlinghouse issued a direct warning as negotiations over the Clarity Act face mounting pressure. According to Garlinghouse, banks must act in good faith if lawmakers hope to secure a workable agreement. He stressed that the opportunity to finalize the legislation remains available, even after weeks of difficult exchanges.

Recent reporting indicated that White House digital asset advisor Patrick Witt had aimed to pass the bill by March 1. That deadline passed without success, which increased concerns about delays. Consequently, attention has shifted to whether stakeholders can resolve disagreements before broader support weakens.

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Banking Groups Remain at the Table

Despite missed timelines, major banking organizations continue participating in discussions. The American Bankers Association and the Bank Policy Institute remain actively involved in shaping revisions. Both groups are providing input as lawmakers refine the legislative draft. Their continued engagement signals that traditional financial institutions still seek influence over digital asset oversight.

Moreover, talks between industry representatives and policymakers have not collapsed. Negotiations continue behind closed doors as participants attempt to narrow differences. However, uncertainty persists as the bill approaches another critical window.

Stablecoin Dispute Slows Momentum

Divisions within the crypto sector have also complicated progress. Coinbase CEO Brian Armstrong previously rejected the Senate draft. According to Armstrong, the proposal was worse than the current regulatory framework. He specifically objected to provisions addressing stablecoin rewards and yield programs. The rejected draft would prohibit several reward structures tied to stablecoin activity.

Garlinghouse adopted a more measured tone in contrast. According to his remarks, regulatory clarity remains preferable to ongoing uncertainty. He cautioned industry participants against allowing disagreements to derail the broader objective. Last week, he stated that the legislation still held an 80 percent chance of passing by the end of April.

Earlier this month, Armstrong told CNBC that a path forward existed for stablecoin legislation. Nevertheless, significant differences remain unresolved. As negotiations continue, the Clarity Act remains under review, with its outcome dependent on whether stakeholders can reach compromise in the coming weeks.

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