Ripple: Time for Compromise

The CEO of Ripple, Brad Garlinghouse, has called on banks to act in good faith regarding the landmark cryptocurrency legislation known as the Clarity Act. In his view, after weeks of disputes and negotiations, the door to an agreement is now wide open.

Earlier reports suggested that White House digital assets adviser Patrick Witt had pushed for the bill to be passed by March 1, but those efforts were unsuccessful. The fate of the legislation may depend heavily on the industry’s stance, particularly as Brian Armstrong of Coinbase firmly rejected the Senate’s version of the bill. He described it as worse than the current legal framework and criticized provisions related to rewards and profits from stablecoins. The rejected proposal would have effectively banned certain user reward models.

Despite the setback, organizations representing the banking sector — including the American Bankers Association and the Bank Policy Institute — continue to participate in discussions and submit feedback on the draft legislation.

Garlinghouse has taken a more pragmatic stance. He emphasized that even imperfect regulations are better than a lack of clear rules. He also warned the crypto industry not to let the pursuit of a perfect solution stand in the way of meaningful progress. Last week, he estimated that there is an 80 percent chance the bill could be passed by the end of April.

Armstrong had previously told CNBC that a path to compromise on stablecoin regulation does exist. For now, however, it remains unclear whether all sides will ultimately be able to reach a final agreement.