Ripple CEO Flags Risk of Crypto Policy Reversal Without Clarity

• Brad Garlinghouse said crypto policy risk remains elevated in the absence of clear legal backing.
• The CLARITY Act timeline has shifted to late May, but Garlinghouse remains positive.
• Stablecoin yield restrictions may tighten, but the market expects institutional inflows.

Ripple CEO Brad Garlinghouse said US crypto policy must be locked into law to prevent political misuse. His warning comes as regulators shift stance and classify 16 major cryptocurrencies as digital commodities under a joint framework from the SEC and CFTC.

Garlinghouse called the framework a huge step forward after years of enforcement pressure under former SEC Chair Gary Gensler. That period, starting in 2021, pushed lawsuits and regulatory action that slowed US crypto growth.

Large firms now ask whether to use stablecoins and digital assets, noted Garlinghouse in a post on X. This marks a move from doubt to adoption.

However, Garlinghouse’s point is that without legal backing, the same policy shift could recur. A change in leadership could bring another crackdown.

CLARITY ACT Delays Push Timeline to May

The Digital Asset Market CLARITY ACT is important for crypto. Garlinghouse now expects the bill to pass by late May, not April. Delay comes from ongoing talks in the Senate Banking Committee.

He still sees strong odds of passage. The bill aims to define how crypto is regulated and split oversight between agencies. 

If passed, it would reduce uncertainty across the market. It would also prevent sudden rule changes tied to political changes.

Draft updates to the bill include limits on yield products for stablecoins. Platforms may not offer interest-like returns. However, rewards tied to usage or loyalty may still be allowed.

For traders and institutions, yield products may tighten, but core stablecoin use stays open.

Garlinghouse said the law will not directly change Ripple’s business. US banks have held back due to regulatory risk, and clear law would remove that barrier. Once that happens, large financial firms are expected to enter the space.

Ripple Growth Continues Despite Flat Market

Ripple reported strong internal growth even as the broader market stayed flat into 2026. Two key drivers stood out.

Ripple Treasury exceeded expectations, delivering real-time liquidity and instant cross-border payments. Meanwhile, Ripple Prime tripled its revenue run rate and expanded access to institutional counterparties.

The company increased headcount by 50% and invested over $1 billion. The focus now is integration, not new launches. Garlinghouse said the goal is to push corporate adoption, expand brokerage services, and strengthen XRP utility.

Related: Ripple CEO Garlinghouse Says Market Doesn’t Need 50 USD Stablecoins