Legislative Outlook Brightens
Brad Garlinghouse, CEO of Ripple, recently revealed during an interview that the Clarity Act has a 90% chance of passing, with expectations that it will be finalized by the end of April. He emphasized that the legislation would bring critical regulatory clarity to the crypto sector.
Defining Regulatory Boundaries
According to Garlinghouse, the Clarity Act will determine which digital assets fall under securities law and which will be regulated by the Commodity Futures Trading Commission (CFTC), aiming to resolve long-standing regulatory ambiguity.
- Classify securities-based assets
- Define the scope of CFTC oversight
- Promote standardized industry development
Reflections on Innovation Hurdles
Garlinghouse pointed out that regulatory uncertainty has already hindered technological innovation. The crypto industry needs a clear legal framework to ensure compliance while fostering progress.
When discussing corporate strategy, he noted that Ripple has spent nearly $3 billion on acquisitions since 2023 but is currently pausing major deals to focus on integration.
Alignment of Industry Needs
Both crypto businesses and traditional financial institutions have expressed strong demand for clear regulatory rules. Garlinghouse believes the passage of the Clarity Act will help build a more stable and transparent market environment, attracting more institutional investors to the digital asset space.