XRP: Ripple CEO Signals Support for Clarity Act

What to Know:

• The Clarity Act, aimed at establishing clear digital asset regulations, faces Senate delays after revisions sparked industry concerns.
• Regulatory uncertainty in the U.S. continues to hinder crypto innovation, influencing institutional investment strategies.
• The delay impacts the prospects for XRP and Ripple, as regulatory clarity is crucial for their operations and institutional adoption.

The Digital Asset Market Clarity Act of 2025, designed to provide a formal rulebook for digital assets in the United States, has recently encountered significant turbulence. A scheduled Senate markup was postponed due to last-minute revisions that sparked widespread concerns within the crypto industry. This setback highlights the ongoing challenges in achieving regulatory clarity, a critical factor for institutional investors navigating the digital asset space.

Clarity Act Roadblock

The Clarity Act seeks to delineate the regulatory jurisdictions between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), while also establishing standards for stablecoins, decentralized finance (DeFi), and tokenized real-world assets. After months of negotiations and progress in the House, the bill faced renewed scrutiny in the Senate. The updated language released by Republicans just before the markup meeting introduced changes that raised substantial concerns among industry participants, leading to the postponement.

Coinbase CEO’s Withdrawal

Brian Armstrong, CEO of Coinbase, publicly withdrew his support for the Clarity Act, a move that intensified the debate within the crypto community. Armstrong argued that the revised text could potentially cause more harm than good. He cited concerns that the draft might stifle tokenized stock markets, broaden government access to DeFi user data, disproportionately favor the SEC in oversight, and diminish the advantages of stablecoins, potentially hindering competition. This decision underscored the deep divisions and complexities in crafting comprehensive crypto legislation.

Industry Leaders Divided

Reactions from other industry leaders have been mixed. Robinhood CEO Vlad Tenev emphasized the dangers of regulatory uncertainty, pointing to the inability to offer staking in several states and the challenges in bringing tokenized equities to U.S. customers. Cardano founder Charles Hoskinson expressed skepticism about the bill’s imminent passage, criticizing U.S. regulators for allegedly favoring large banks over innovators. Despite these concerns, several major firms, including Andreessen Horowitz, Circle, Paradigm, and Kraken, continue to support the Clarity Act, indicating a belief in its potential value.

Ripple’s Perspective

Ripple CEO Brad Garlinghouse has been a vocal advocate for the Clarity Act, emphasizing that even an imperfect bill is preferable to the current regulatory ambiguity. Garlinghouse argues that clear rules, even if initially flawed, provide a foundation for companies to build around and foster greater market stability. He has urged industry leaders to remain engaged in the legislative process, suggesting improvements and collaborating with lawmakers rather than abandoning the effort in frustration. This perspective aligns with Ripple’s ongoing efforts to navigate the complex regulatory landscape, particularly in light of its legal battles with the SEC.

Implications for XRP and Institutional Flows

The delay in the Clarity Act’s progress has direct implications for XRP and Ripple. Regulatory clarity is essential for institutional investors to gain confidence in the digital asset market. Uncertainty surrounding the legal status of cryptocurrencies and the regulatory framework governing their use can deter institutional inflows and hinder broader adoption. For XRP, clear guidelines would provide greater certainty regarding its classification and use in cross-border payments, potentially unlocking new opportunities for institutional investment and partnerships. The ongoing regulatory developments in the U.S. will continue to be a key factor influencing the trajectory of XRP and Ripple in the market.

Related: XRP Forecast: Will It Hold $2.01 Support?

Source: Original article