Ripple CEO Pushes Banks on CLARITY Act
Ripple CEO Brad Garlinghouse is increasing pressure on banks now that the March 1 deadline for the CLARITY Act has passed. He claims the bill has a 90% chance of passing by April, which would split SEC/CFTC oversight and could reclassify major altcoins like $XRP, $SOL, and $LINK as commodities, potentially paving the way for new ETFs.
The Digital Asset Market Clarity Act, or H.R. 3633, aims to resolve the long-standing jurisdictional dispute between the SEC and CFTC that has created regulatory uncertainty for the digital asset industry. The bill passed the House in July 2025 with bipartisan support (294-134) and seeks to establish a clear framework for digital asset markets, moving away from a "regulation-by-enforcement" approach. At its core, the legislation would grant the CFTC primary authority over "digital commodities" and their spot markets, while the SEC would retain oversight of digital assets that function like securities. The bill defines a path for assets that may begin as securities (during a fundraising phase) to transition into commodities as their networks become sufficiently decentralized. Brad Garlinghouse's call for banks to negotiate in "good faith" is directed at groups like the American Bankers Association and the Bank Policy Institute, which are actively providing input on the bill. His push for compromise comes as other industry leaders, notably Coinbase CEO Brian Armstrong, have strongly opposed the Senate's draft, particularly over its proposed restrictions on stablecoin rewards. The potential reclassification of assets like XRP and SOL as commodities is significant because it would remove them from the SEC's purview under securities laws, which is the main obstacle to launching spot ETFs in the U.S. While the U.S. awaits clarity, Europe already has several exchange-traded products (ETPs) that track these altcoins. Institutional interest in these assets is already evident. The CME Group, a leading derivatives marketplace, has launched futures contracts for both XRP and Solana, citing strong demand and growing liquidity. The approval of spot ETFs is widely expected to unlock substantial institutional capital, similar to the inflows seen after the launch of Bitcoin and Ethereum ETFs.
