Trump publicly pressures to advance the "Clarity Act," Ripple CEO Brad Garlinghouse supports crypto regulation reform

March 6 News: U.S. cryptocurrency regulation legislation has once again become the focus of the market. Ripple CEO Brad Garlinghouse recently posted on social media supporting President Donald Trump’s strong stance on the “Clarity Act” and called on Congress to pass the bill as soon as possible. The legislation is seen as an important step toward establishing a clear regulatory framework for digital assets, but it remains stalled over disputes regarding stablecoin provisions.

Garlinghouse stated that Trump sent a “very clear signal” to lawmakers delaying the bill’s progress. He believes the “Clarity Act” not only concerns the development of the crypto industry but also impacts the U.S.'s global competitiveness in digital asset innovation. Some market participants also think that clarifying the regulatory framework would significantly reduce uncertainty in the crypto market.

The current controversy mainly revolves around the yield models of stablecoins. Previously, the U.S. passed the “Genius Act,” which prohibits stablecoins from paying interest directly to holders. However, some crypto companies offer yields through reward programs and other methods, a model viewed by traditional banks as a regulatory loophole. Banking lobbies want stricter restrictions to be included in the “Clarity Act” to prevent stablecoin products from attracting large deposits and draining funds from the banking system.

Banking institutions warn that if stablecoin yield mechanisms persist, funds could flow from traditional banks into the digital asset market. Some research firms estimate that by 2028, bank deposit outflows could reach $500 billion. In response, some bank executives suggest that if crypto companies want to offer interest-like returns to users, they should be subject to the same regulatory standards as banks.

The core goal of the “Clarity Act” is to establish a classification standard for digital assets. According to the draft, crypto assets will be classified as commodities or securities based on the principle of “full decentralization.” If a blockchain network is no longer controlled by a single entity in terms of governance and issuance, its tokens may be deemed commodities and regulated by the U.S. Commodity Futures Trading Commission.

Policy uncertainty has already affected market sentiment. U.S. Treasury Secretary Scott Bessent previously pointed out that legislative delays are one of the main reasons for recent Bitcoin volatility. Meanwhile, Garlinghouse believes that if the “Clarity Act” passes smoothly, market confidence could improve significantly, and Bitcoin might reach new all-time highs by 2026.

Currently, the bill remains at the Senate Banking Committee stage. Until the banking and crypto industries reach an agreement on stablecoin provisions, the regulatory framework for U.S. digital assets will continue to face significant uncertainty.