Ripple CEO Brad Garlinghouse arrived at the Semafor World Economy Summit in Washington this week with a message for anyone still watching the CLARITY Act negotiations: the frustration is the signal.
“When people are at their peak frustration, that’s when they finally compromise, and it gets done,” Garlinghouse told Semafor’s Jax Alemany, relaying what Washington insiders have told him. “I think we’re there.”
Why Legislative Permanence Still Matters
Garlinghouse acknowledged the March 17 joint statement from the SEC and CFTC – which classified Bitcoin, Ethereum, XRP and 13 other assets as digital commodities – as a genuine turning point.
“What happened two weeks ago with the SEC and CFTC coming together with a joint statement was truly groundbreaking in a bunch of ways,” he said. “From my point of view, it ended an era of lawfare against this industry, which turns out didn’t have the support of what the law actually said.”
But he was direct about why the CLARITY Act still matters despite that win. An interpretive release from regulators can be reversed. A law cannot.
Also Read: US Banks Just Fired Back at the White House Over Stablecoin Yield: “Misleading Sense of Safety”
Without the CLARITY Act codifying the new regulatory framework into law, Garlinghouse warned that a future SEC chair could reverse everything the current administration has built – returning to what he called Gensler’s “unlawful war on crypto.” That outcome, he said, would be bad for the US, bad policy and bad politics.
The Midterm Calculation
Garlinghouse also made a political observation that carries weight as the November midterms approach. Being anti-crypto, he argued, is no longer a safe position for lawmakers. “Being anti-crypto doesn’t get you any votes,” he said, pointing to voter education efforts in the last election cycle as evidence that the industry’s political influence has grown.
The crypto industry deployed over $200 million through political action committees in the 2024 election cycle – the largest political investment in the sector’s history.
Cautious But Still Optimistic
His overall tone was measured. Garlinghouse was transparent that his confidence has shifted since February, when he publicly estimated 90% odds of passage by April.
The Semafor interview came on the same day the US Senate returned from Easter recess and White House crypto adviser Patrick Witt told reporters the stablecoin yield compromise between key senators appears intact. The Senate Banking Committee markup is targeted for late April.
Senator Bernie Moreno has warned that if the bill does not reach the Senate floor by May, midterm politics will effectively shelve it for the rest of 2026.