- Ripple CEO Brad Garlinghouse said expectations for the U.S. Clarity Act to pass have slipped from April to potentially May.
- Garlinghouse noted that corporate interest in stablecoins is growing and that stablecoins are becoming an important point of entry for businesses.
- Additionally, he stated that Ripple is still developing XRP's use in financial infrastructure and payments.
According to Brad Garlinghouse, CEO of Ripple (XRP), the anticipated timeline for the U.S. Clarity Act has been postponed, indicating slower-than-expected progress on important crypto legislation.
Speaking on Friday at the Future Investment Initiative, Garlinghouse stated that although he had previously projected that the bill would become law by the end of April, he now anticipates a delay. He stated that "the likelihood of that has gone down" and that he now expects passage by the end of May.
The Clarity Act is a crucial framework for defining regulatory oversight in the cryptocurrency sector. Garlinghouse stressed that important issues still need to be resolved, especially with regard to the structure of some parts of the legislation. However, he expressed optimism despite the delay, stating that his recent conversations with lawmakers in Washington are progressing and that a compromise is likely imminent.
Ripple XRP's price was trading over $1, flat in the last 24 hours. On Stocktwits, retail sentiment around XRP remained in the ‘bearish’ zone, as chatter levels remained at ‘low’ over the past day.
CLARITY Act Could Be Beneficial To Banks
According to Garlinghouse, greater participation by US financial institutions, many of which are hesitant to become more involved in cryptocurrency due to regulatory uncertainty, would be enabled by clearer regulations.
"It's an unlock for the banks," he said, adding that enshrining regulations in legislation would promote wider adoption and help avert future regulatory reversals.
Garlinghouse emphasized Ripple's robust business momentum beyond regulation, citing two significant acquisitions last year that exceeded $1 billion and projections.
One, now known as Ripple Treasury, provides corporate finance teams with an international liquidity management platform. He said that Chief Financial Officers (CFOs) are looking into stablecoins as a faster, less expensive alternative to conventional cross-border payments.
According to him, corporate interest in stablecoins continues to grow rapidly, and executives and boards are increasingly asking how to incorporate them into treasury operations.
Garlinghouse said "stablecoins are becoming the entry point into crypto," characterizing the trend as a "ChatGPT moment" for the sector.
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