• Ripple CEO Brad Garlinghouse said the CLARITY Act may miss its April deadline as legislative negotiations become increasingly complex.
• Garlinghouse warned against a repeat of past SEC actions, urging lawmakers to codify rules and avoid politically driven regulatory overreach.
• He stated that Ripple is on track for a record Q1 2026, with results driven by the company's 2025 acquisitions.

Ripple CEO Brad Garlinghouse said progress on the Digital Asset Market Clarity Act (CLARITY) may take longer than expected. Speaking on Fox Business' Mornings on Friday, he said the bill is unlikely to pass Congress by the end of April, pushing back earlier expectations.

"We're going to get there, it's just taking a little longer than we thought," he said.

Garlinghouse shows optimism towards CLARITY Act passage despite recent delays

Garlinghouse, who previously estimated a high chance of passage within that timeframe, now expects approvals to extend into late May, citing ongoing negotiations within the Senate Banking Committee.

"A lot of eyes are on what US regulation is going to look like and if it's going to get done," Garlinghouse said.

He stated that there is strong optimism around the bill's passage and emphasized the importance of embedding regulatory reforms into law, adding that this will help ensure consistency across political cycles and avoid policy reversals tied to changes in leadership.

"We want to make sure we can't have another Gary Gensler moment where they try to weaponize policy in a way that is about politics, not about what's good for the United States [...] which is why we need to see these things codified," he said.

When asked how the bill could affect Ripple, Garlinghouse said it would not "change Ripple's business too much." Rather, it gives US banks confidence to shift towards the industry, despite past regulatory clampdowns.

"If we get it codified into law, I think you'll see more of the largest financial institutions in the United States and in the world lean in more into this industry," he added.

The remark follows proposed revisions tied to the bill, which could restrict how stablecoin yield products are offered. Draft provisions under discussion would prevent crypto platforms from providing interest or yield on stablecoin balances, targeting structures that resemble traditional deposit returns.

However, the proposal leaves room for certain incentives, such as loyalty programs or transaction-based rewards, provided they are not designed as passive-income mechanisms.

Garlinghouse also highlighted a strong business performance for Ripple. He stated that the company is on track to deliver a record Q1 result, supported by acquisitions completed in 2025.