Ripple CEO Brad Garlinghouse took the stage at CoinDesk's Consensus Miami this week and delivered a blunt warning: if the Senate Banking Committee doesn't move soon on the CLARITY Act, the bill's chances of passing this year will drop sharply. Speaking before a crowd of industry insiders, Garlinghouse said the next two weeks are decisive for the legislation's momentum and procedural path. The bill, which would set federal rules for payment stablecoins, has been stuck in committee markup for weeks.
Garlinghouse's two-week warning
The CLARITY Act has broad bipartisan support in principle, but the mechanics of getting it through committee are proving tricky. Garlinghouse didn't mince words: without a markup happening soon, the legislative calendar will crowd out the bill. He described the legislation as a product of tradeoffs and compromises — not perfect, but necessary for regulatory clarity. The clock is ticking, and the industry is watching.
How the bill treats stablecoin yield
One of the stickiest points in the CLARITY Act is its approach to yield. The current draft bars crypto companies from paying customers any form of interest or yield for holding payment stablecoins — the same treatment traditional bank deposits get. But there's a carve-out: incentives or rewards that aren't functionally or economically comparable to bank deposit interest are allowed. That carve-out has become a flashpoint. Some critics worry the language is too narrow and could let crypto firms repackage yield-like rewards that still resemble deposit interest, while others say it's too broad and could create loopholes.
Why banks are divided
The yield language is driving a split among banks. Larger consumer-facing banks are taking issue with the compromise wording, arguing it could undermine the level playing field. Banks without consumer arms are more comfortable with the current approach. Community banks, represented by the Independent Community Bankers of America (ICBA), have voiced concerns about how the approach might affect their perspective and interests. At least one major bank has told lawmakers it fears the language is drafted too narrowly, potentially allowing crypto firms to offer yield-like rewards that still look like deposit interest. The disagreement means Senate staffers are still negotiating language behind closed doors.
XRP, the token most closely associated with Ripple, was trading at $1.41 at the time of writing, up 2.5% over the past week. But the real action this week is in Washington. Whether the CLARITY Act gets a markup in the coming days will determine whether stablecoin legislation has a real shot in 2026 — or gets pushed to the back of the queue.
