Ripple CEO Brad Garlinghouse has issued a stark warning about the CLARITY Act's prospects, stating the digital asset market structure bill could lose momentum if the Senate fails to act within two weeks. Speaking at Consensus Miami, Garlinghouse emphasized that delays risk pushing the legislation into the November midterm elections political cycle, where campaign pressures could turn the issue into "too much of a loaded issue." His remarks represent a significant shift from his earlier optimistic timeline, as reported by crypto.news. The legislation, commonly tied to the CLARITY Act framework, aims to create federal rules for digital assets and divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. With the Senate Banking Committee back in session, this represents the final, high-stakes opportunity this year to pass the bill.
Opposition from major U.S. banking groups is intensifying pressure on efforts to advance crypto legislation in the Senate. TD Cowen's Jaret Seiberg warned that the ongoing stablecoin yield dispute could delay Senate Banking Committee markup into June, risking missing the late July voting window ahead of the August recess. Bank trade groups, including the Bank Policy Institute and American Bankers Association, have rejected the stablecoin yield compromise that previously removed a key hurdle in the bill's progress. According to crypto.news, the agreement restricts crypto platforms from offering interest-like returns on stablecoins that resemble bank deposits, while still allowing rewards tied to payments and platform activity. The yield dispute had previously delayed the bill since January, with disagreements centered on whether third-party platforms could distribute returns on stablecoin balances.
TD Cowen's Jaret Seiberg remains skeptical that the CLARITY Act passes this year, citing multiple obstacles beyond the stablecoin yield dispute. He highlighted a lack of Commodity Futures Trading Commission commissioners, conflicts tied to a crypto project linked to former President Donald Trump, and the need for bipartisan support to clear the Senate's 60-vote threshold. The compromised bill faces additional regulatory complications from the GENIUS Act, with proposed rules from the Office of the Comptroller of the Currency potentially restricting most stablecoin yields. Even if those rules face legal challenges, Seiberg noted that banks could still rely on them if the broader crypto market structure bill does not pass. The August recess remains the effective deadline for enacting the bill this year, with the Senate Banking Committee likely needing to move the measure by late June if the full Senate is to vote by late July.
Despite $1.29 billion in total net inflows since XRP spot ETFs launched in late 2025, with April 2026 alone adding $81.6 million, institutional flows are currently a floor rather than a catalyst. As reported by crypto.news, XRP's price remained trapped despite a 20-day inflow streak in April that pulled in roughly $82 million, with daily ETF buying of $5 to $17 million proving insufficient to break above the $1.45 resistance. The streak ended on April 30 with a $5.83 million outflow, coinciding with a decisive break below the key $1.40 support level that has since traded down to around $1.38. The disconnect highlights that ETF demand is merely absorbing selling pressure rather than creating upward momentum, with the market testing whether underlying demand can hold the new lower ground without clear legislative catalysts.
Industry expectations for the CLARITY Act's passage remain cautious despite recent progress, with Polymarket pricing placing 2026 passage near 46%, while Galaxy Research and TD Cowen offered similar or weaker odds. Garlinghouse's earlier timeline had been more optimistic, expecting the bill to reach President Donald Trump's desk before the Memorial Day recess after previously assigning an 80% probability of April passage during a February appearance on Fox Business. The bill has already passed the U.S. House of Representatives and cleared a Senate Agriculture Committee markup in January, but requires approval from the Senate Banking Committee before a full chamber vote. A third stall would be a severe blow, removing XRP's last major catalyst and likely triggering a retest of lower price levels, as the market has already shown it cannot sustain momentum without clear forward catalysts.
