Ripple CEO Brad Garlinghouse Predicts April Deadline for Digital Assets Clarity

The Digital Asset Market Clarity Act has faced significant roadblocks in the U.S. Senate despite passing the House last July. Now Ripple CEO Brad Garlinghouse is signaling that the legislation could finally move forward, offering an 80% probability of signing by the end of April. His optimism comes as the White House intensifies efforts to bridge the widening gap between the banking and cryptocurrency industries over a contentious provision on stablecoin rewards.

The Stablecoin Rewards Dispute: Core of the Gridlock

At the heart of the Clarity Act delay lies a fundamental clash between two powerful industries. The proposed legislation aims to establish clear regulatory boundaries by defining which digital assets fall under Securities and Exchange Commission (SEC) jurisdiction and which belong to the Commodity Futures Trading Commission (CFTC). However, a specific provision restricting cryptocurrency platforms from offering rewards to stablecoin holders has become the breaking point.

The banking sector fears massive deposit migration. Stablecoins like Tether’s USDT, Circle’s USDC, and Ripple’s RLUSD, all pegged 1:1 to the U.S. dollar, are viewed as potential replacements for traditional deposits. A Standard Chartered research report warns that if the stablecoin market reaches $2 trillion, developed economies could lose approximately $500 billion in bank deposits by 2028. In response, the crypto industry characterizes this as anticompetitive behavior, with Coinbase dramatically withdrawing its support last month, stating it would “rather have no bill than a bad bill.”

Government Intervention: Treasury and Trump Back the Path Forward

U.S. Treasury Secretary Scott Bessent has emerged as a key broker in negotiations, calling out what he termed “recalcitrant actors” blocking compromise. Bessent warned that massive deposit outflows would cripple banks’ ability to lend to small businesses, agriculture, and real estate development. President Donald Trump has also publicly backed the legislation, suggesting resolution is within reach.

Throughout these negotiations, Ripple has positioned itself as a pragmatic advocate, maintaining that an imperfect bill surpasses indefinite regulatory chaos. The company’s legal victory in its SEC lawsuit—establishing that XRP is not a security—strengthens its credibility in pushing for industry-wide clarity.

Ripple CEO Brad Garlinghouse’s Optimistic Timeline

On February 17, Ripple CEO Brad Garlinghouse argued that perfection cannot be allowed to obstruct progress. Drawing parallels to Ripple’s own multi-year SEC battle, which ultimately delivered the clarity that “XRP is not a security,” he contended that similar legislative clarity would benefit the entire industry. His prediction of an 80% probability for passage by April’s end reflects confidence that ongoing negotiations are approaching resolution.

While the Clarity Act may not satisfy every stakeholder, Garlinghouse’s assessment signals that momentum has shifted. The convergence of White House pressure, industry fatigue, and government backing suggests the legislative logjam could finally break in the coming weeks.