Ripple CEO Sees 90% Chance for CLARITY Bill by April

Renewed Momentum for the CLARITY Act

Brad Garlinghouse, CEO of Ripple, recently expressed optimism about the CLARITY Act's prospects during a Fox Business interview on February 20, 2026. He stated there is now a "90% chance" the legislation will pass by the end of April, citing intensified engagement from lawmakers and White House officials.

Garlinghouse highlighted that recent meetings brought together leaders from both crypto-native firms and traditional banks, indicating a strengthened political appetite for clear digital asset regulation after many months of stalled progress.

"The industry can’t live in limbo," Garlinghouse said, emphasizing that regulatory uncertainty has weighed heavily on innovation and market confidence.

The CLARITY Act seeks to provide needed clarity about which digital assets are securities regulated by the Securities and Exchange Commission (SEC) and which fall under the Commodity Futures Trading Commission's (CFTC) oversight.

Clarifying Oversight: Securities vs. Commodities

The bill's primary goal is to clarify regulatory frameworks for crypto assets, addressing a long-standing issue that has hampered both technological innovation and broader institutional involvement.

Aspect	Securities Law (SEC)	Commodity Oversight (CFTC)
Applies to	Digital assets classified as securities	Digital assets viewed as commodities or futures
Regulatory Focus	Investor protection, disclosure, trading restrictions	Market integrity, futures, derivatives, spot trading
Impact on Crypto Platforms	Compliance requirements, registration	Oversight of derivatives and trading platforms

The bill has faced challenges, particularly concerning provisions on stablecoins and whether crypto platforms can offer yield-generating incentives, commonly known as stablecoin rewards.

Sources reveal that the White House has set a March 1 deadline to finalize negotiations on such contentious points, signaling urgency in moving forward.

Ripple’s Strategic Pause Amid Integration Focus

Since 2023, Ripple has invested nearly $3 billion in acquisitions expanding its capabilities in custody, prime brokerage, and treasury management. With the passage of the CLARITY Act approaching, Garlinghouse announced the company will temporarily halt major deals to concentrate on integrating its new assets efficiently.

This strategic move aims to position Ripple at the forefront of providing compliant and innovative solutions, particularly in cross-border payments, stablecoin liquidity management, and corporate treasury services.

"Both crypto firms and traditional institutions increasingly want clear rules to compete on equal footing," Garlinghouse said, reflecting a significant shift in mainstream financial attitudes toward digital assets.

Market Context and Industry Impact

The broader crypto market has seen heightened volatility in recent weeks, with bitcoin and other tokens experiencing pullbacks. Despite this, Ripple reports rising interest from corporate treasurers and financial institutions exploring the use of stablecoins and blockchain-based solutions.

Polymarket, a prediction market, currently assigns an 82% probability that the CLARITY Act will pass before the end of 2026, underscoring market optimism about regulatory clarity.

Ripple’s XRP token continues to benefit from a favorable legal environment after a federal court ruling affirmed it is not a security, a clarity many in the industry have yet to receive.

What This Means for Crypto Regulation

If the CLARITY Act passes, it would represent one of the most significant legislative milestones in U.S. crypto policy, potentially unlocking increased innovation and investment by providing clearer guardrails.

By distinguishing securities from commodities, the legislation would reduce the regulatory gray areas that have historically deterred institutional participation.

Such clarity could accelerate growth in emerging areas like DeFi, stablecoins, and tokenized assets, while addressing investor protections and systemic risks.

Summary

The increasing likelihood of the CLARITY Act passing by April marks a pivotal moment for the U.S. crypto sector. Ripple CEO Brad Garlinghouse’s confident 90% forecast reflects an industry ready to move out of regulatory limbo toward clearer rules that balance innovation with investor protection.

As Ripple consolidates its acquisitions and financial institutions signal heightened interest, clearer oversight promises to unlock new opportunities in cross-border payments and stablecoin applications. However, the exact provisions, especially on stablecoin rewards, require delicate negotiation to satisfy all stakeholders.

This legislation's passage could significantly reshape crypto regulation in America, setting a more defined course for growth and integration into the mainstream financial system, while also serving as a model for global regulatory frameworks.