Ripple CEO Sees 90% Chance of U.S. Crypto Law by April

Ripple CEO Brad Garlinghouse stated on Thursday that he sees a 90% probability of a U.S. crypto law being passed by April 2026. Garlinghouse cited ongoing legislative efforts and interagency coordination as key enablers of a regulatory resolution. His remarks were made during a public interview focused on the broader implications for the digital asset industry.

The CLARITY Act, a legislative proposal to clarify the roles of the SEC and CFTC in crypto regulation, is advancing through Congress. The bill, which has already passed the House, aims to resolve the regulatory stalemate and provide clearer compliance expectations for market participants. The White House and Treasury Department have signaled support for the initiative.

Industry analysts note that the act is one of several legislative and policy measures expected to reshape the U.S. crypto landscape this year. A complementary bill, the Digital Commodity Intermediaries Act, is also being considered in the Senate. These efforts are part of a broader push to create a more predictable legal framework for digital assets.

Why Is the CLARITY Act Gaining Momentum?

The CLARITY Act is designed to clarify regulatory responsibilities between the SEC and CFTC for digital assets. This includes defining which tokens are subject to securities laws and which fall under commodities regulations. The bill also reduces ambiguity in enforcement actions and provides a more stable environment for intermediaries like exchanges and brokers.

The coordination between the SEC and CFTC is a key factor in the bill's progress. Recent efforts under "Project Crypto" have facilitated cooperation between the two agencies. SEC Chair Paul S. Atkins has emphasized the importance of this collaboration, calling it a bridge to a durable regulatory framework.

How Do Corporate Treasuries View Stablecoins?

Stablecoins such as USDC and USDT are increasingly used in corporate treasury operations for cross-border payments and liquidity management. These digital assets enable faster settlements and programmable finance, which are attractive to large institutions. However, their adoption also introduces new complexities in accounting and risk management. Under both IFRS and GAAP, stablecoins are typically classified as intangible assets, not cash equivalents. This classification requires careful valuation and reporting practices.

Treasurers are advised to develop clear accounting policies and segregate operation-level wallets to manage risks like de-pegging and counterparty exposure. Automation tools are also recommended to ensure audit readiness and real-time visibility into stablecoin holdings.

What Are the Next Steps for the CLARITY Act?

The CLARITY Act is now being considered in the Senate. The Senate Agriculture Committee has advanced a complementary bill that incorporates provisions negotiated with Democrats. The next steps include committee markups, cross-committee coordination, and a potential floor vote. While no fixed timeline has been set, Treasury Secretary Scott Bessent has called for the bill to pass "this spring."

The White House's support adds momentum to the legislative process. However, the final outcome will depend on bipartisan consensus and the resolution of key technical and policy issues. Market participants are closely monitoring the progress, as it could significantly impact the structure of the U.S. digital asset market.

What Implications Will a New Law Have?

A finalized crypto law could provide long-term stability for the industry by establishing clear regulatory boundaries. This would help reduce uncertainty for businesses, exchanges, and investors. It could also accelerate innovation by enabling clearer compliance pathways for new products and services. However, the specific terms of the law will determine its effectiveness in achieving these goals.

Analysts are also watching how the law will interact with existing accounting and risk management standards. For example, if stablecoins continue to be treated as intangible assets, this could influence corporate treasury strategies and reporting requirements. The industry will need to adapt quickly to any new regulatory expectations.

Investors and industry players are advised to stay informed about the legislative developments. The final outcome could shape the U.S. crypto market for years to come, affecting compliance, innovation, and cross-border transactions.