Ripple CEO: CLARITY Act 80% Likely to Pass by April 2026 Brad Garlinghouse cites accelerating White House engagement, bipartisan momentum, and growing traditional finance support as signals that the long-debated digital asset market structure bill is nearing the finish line.
February 20, 2026
Source: Investing.com

What Did Garlinghouse Say About the CLARITY Act?

Ripple CEO Brad Garlinghouse stated on Fox Business in February 2026 that he sees an 80% chance the CLARITY Act will be signed into law by the end of April 2026 — a more aggressive timeline than most industry observers had anticipated. Garlinghouse cited accelerated White House engagement, growing bipartisan support in Congress, and increasing alignment between crypto firms and traditional financial institutions as driving the optimistic outlook.

Garlinghouse framed the moment as decisive: "The industry can't live in limbo." He described the bill as "imperfect but necessary," signaling a pragmatic stance that regulatory clarity — even if imperfect — is preferable to continued uncertainty.

What Does the CLARITY Act Do?

The CLARITY Act — the Digital Asset Market Structure and Investor Protection Act — is the companion legislation to the GENIUS Act, addressing the market structure side of the U.S. digital asset regulatory framework. Where the GENIUS Act governs stablecoin issuance, the CLARITY Act defines how digital assets more broadly should be classified and supervised.

Core Provisions

  • Securities vs. CFTC jurisdiction: The bill draws a clearer line between which digital assets fall under SEC securities law and which fall under CFTC commodity oversight — resolving the long-standing jurisdictional ambiguity that has created compliance uncertainty for the industry
  • Market structure rules: Establishes regulatory requirements for digital asset exchanges, brokers, and trading platforms operating in the U.S.
  • Consumer protections: Includes investor protection provisions for retail participants in digital asset markets

Legislative History

  • July 2025: Passed the House of Representatives
  • January 2026: Cleared the Senate Agriculture Committee
  • Status: Awaiting Senate Banking Committee markup — the final major hurdle before a full Senate vote

What Is Driving the April Timeline?

Several converging signals have shifted expectations toward an accelerated legislative timeline:

White House Engagement

The White House set a March 1, 2026 target to advance negotiations on the stablecoin rewards dispute — the last major sticking point blocking Senate Banking Committee markup. Patrick Witt, White House Crypto Council Executive Director, has been directly involved in brokering the compromise. Garlinghouse noted that "leadership from the White House has been really critical" to advancing the legislation.

Senate Signals

Senator Bernie Moreno publicly stated the bill would pass Congress "hopefully by April," aligning with Garlinghouse's timeline. The Senate Banking Committee markup — previously stalled over the rewards dispute — is expected to proceed once the White House-brokered agreement is finalized.

Prediction Markets

Polymarket bettors spiked from 60% to 90% odds of passage following positive statements from Garlinghouse and Coinbase CEO Brian Armstrong, before settling at approximately 77-82% — a significant increase from pre-2026 levels.

What Are Other Industry Leaders Saying?

Garlinghouse's assessment reflects a broader industry alignment:

  • Goldman Sachs CEO David Solomon publicly advocated for the CLARITY Act, framing clear market structure rules as necessary for traditional financial institutions to compete fairly with crypto-native firms
  • Ripple Chief Legal Officer Stuart Alderoty met directly with White House crypto leadership to advance the legislation — representing the kind of direct industry-government engagement that signals a deal is within reach
  • Coinbase CEO Brian Armstrong issued positive statements that contributed to the Polymarket odds spike, indicating broad crypto industry support for moving the legislation forward

The participation of traditional finance executives alongside crypto industry leaders in advocating for the CLARITY Act reflects a notable convergence of interests — both sides now see regulatory clarity as a competitive necessity rather than a threat.

What Should Financial Institutions Consider?

On Legislative Timeline Planning

  • An April passage would compress the implementation timeline significantly — institutions should not treat CLARITY Act compliance as a 2027 or 2028 problem
  • Monitor Senate Banking Committee markup activity closely; that is the critical gating event before a full Senate vote
  • The White House's March 1 stablecoin rewards deadline is a leading indicator — resolution by that date would likely cascade quickly into CLARITY Act movement

On Market Structure Readiness

  • Institutions trading, holding, or contemplating offering digital asset products should begin assessing how CLARITY Act classifications will affect their existing positions
  • The securities vs. CFTC jurisdiction determination will have direct compliance implications for how institutions custody and report digital asset holdings
  • Firms that have already built GENIUS Act compliance infrastructure will be better positioned to layer on CLARITY Act requirements — the two frameworks are designed to work together

On Competitive Positioning

  • Goldman Sachs's public advocacy signals that large traditional financial institutions view CLARITY Act passage as enabling, not threatening — institutions on the sidelines should recalibrate accordingly
  • The convergence of crypto and traditional finance support for the bill suggests the post-CLARITY Act landscape will be more competitive, not less, for digital asset services

The Coinbax Perspective

Garlinghouse's 80% prediction is a market signal as much as a legislative forecast. When the CEO of one of crypto's most prominent firms — one that fought a multi-year legal battle over XRP's classification — publicly assigns high probability to passage by a specific month, it reflects ground-level intelligence from direct engagement with policymakers.

The more significant data point may be Goldman Sachs CEO David Solomon's advocacy. Traditional finance institutions don't publicly lobby for crypto legislation unless they see concrete business opportunity in the resulting framework. The CLARITY Act's passage would unlock institutional participation in digital asset markets at a scale that hasn't been possible under regulatory ambiguity — and that's a competitive reality every financial institution needs to be ready for.

For banks and credit unions operating in stablecoin and digital payment infrastructure, the GENIUS Act and CLARITY Act together form the complete regulatory picture. Programmable escrow, real-time compliance, and built-in reversibility aren't just GENIUS Act features — they are the operational backbone for the broader market structure the CLARITY Act will define.

Frequently Asked Questions

What is the CLARITY Act, and how does it differ from the GENIUS Act?

The GENIUS Act establishes the framework for payment stablecoin issuance. The CLARITY Act addresses broader digital asset market structure — defining which assets are securities, which are commodities, and how trading platforms and brokers must operate. Together they form the two-part U.S. digital asset regulatory framework.

What is the last major obstacle to Senate passage?

The Senate Banking Committee markup has been stalled over the stablecoin rewards dispute — whether stablecoin issuers can offer yield or rewards to holders. The White House is targeting a March 1, 2026 resolution; a deal by that date would likely unlock committee action and accelerate the timeline toward a full Senate vote.

Why does traditional finance support matter for the CLARITY Act?

Institutions like Goldman Sachs have significant lobbying influence with the Senate Banking Committee members who control the markup schedule. Their public advocacy signals to lawmakers that the bill has broad financial sector support — reducing political risk and building the coalition needed for passage.

What should financial institutions do before the bill passes?

Institutions should assess how CLARITY Act digital asset classifications would apply to their current holdings and product plans, begin mapping securities vs. CFTC jurisdiction implications for existing digital asset exposure, and ensure GENIUS Act compliance infrastructure is in place — as it will serve as the foundation for layering on CLARITY Act requirements.