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Ripple CEO Brad Garlinghouse has come out in favor of the CLARITY Act, a day before it is set to be put to a vote in the US Senate Banking Committee. The watered-down version of the earlier draft, which is missing key points, is still a fantastic piece of legislation, Garlinghouse stated, and Ripple was in favor of it. If approved by the committee, the CLARITY Act will then move to the main US Senate floor, and a general vote will be held.
The bill has been in the making for more than a year and has been agreed in principle by banks and large crypto companies. It is US President Donald Trump’s flagship crypto legislation project, aimed at fulfilling one of his key promises during the 2024 election campaign.
Garlinghouse Praises Senate Leadership for Advancing the Bill
Garlinghouse was replying to an earlier tweet by Republican Senator Tim Scott, who also praised the CLARITY Act and welcomed a new era of crypto in the country.
“Families, small businesses, investors, and innovators deserve clear rules of the road for digital assets. The Senate’s version of the CLARITY Act delivers certainty, safeguards, and accountability, while protecting Main Street, strengthening national security, and keeping innovation in America,” stated Tim Scott.
In response, Garlinghouse tweeted:
 
Garlinghouse conveyed a sense of urgency, as crypto assets have been stuck in a permanent state of limbo for the better part of the last decade. He praised the committee’s leadership for their efforts in advancing the bill. However, the committee’s passage is only one step towards full approval on the Senate floor.
Donald Trump is especially interested in this proposal because he wants to win on this front before the midterm elections later this year. The window for the meaningful passage of crypto regulation is closing fast, and senators will keep that in mind as they vote for or against it.
The Future
While the much-awaited bill is now in agreement among most banks and crypto exchange platforms, there are still ongoing efforts by dissenting groups to lobby against it. For the opposing banks, the legislation provides multiple loopholes that digital currency companies could exploit in the future. For several crypto purists who oppose it, the legislation is not substantial and tilts in favor of banks.
It remains to be seen how much understanding there is among Senate members regarding the CLARITY Act. The Republicans hold a razor-thin majority in the upper house, and only a few opposing votes can defeat it, so all eyes will be on it in the coming weeks.