TL;DR:
- Garlinghouse publicly backed the CLARITY Act and estimated an 80–90% chance it will pass before April 2026.
- Donald Trump accused banks of trying to hold the law “hostage” and warned the industry could migrate to China if no progress is made.
- JPMorgan and other banks demand that stablecoin platforms meet the same regulatory requirements as traditional financial institutions.
Brad Garlinghouse, chief executive officer of Ripple, publicly reaffirmed his support for the CLARITY Act as political and financial pressure in Washington continues to escalate. The executive stressed that passing the bill is not a matter of sectoral convenience but of American consumer protection: “This has always been, and continues to be, what is in the best interest of the American people.”
Garlinghouse has reiterated in recent weeks that the priority must be regulatory certainty, not the pursuit of perfect legislation. In his view, prolonged negotiations cause more harm than an imperfect regulatory framework, and he estimated an 80% to 90% probability that the CLARITY Act will be approved before the end of April 2026.
Garlinghouse and Trump: The Importance of the Clarity Act
President Donald Trump published a direct warning to the banking system on Truth Social. In the post, he accused banks of attempting to block both the CLARITY Act and the GENIUS Act, a stablecoin bill introduced last year. Trump noted that financial institutions are posting record profits and, even so, are seeking to stall an agenda that, as he warned, could end up benefiting China if Congress does not act swiftly.
The president also urged legislators to move forward and avoid further delays, arguing that any delay puts the United States’ leadership in the global digital asset market at risk.
Stablecoin Yields: the Heart of the Conflict
The sharpest point of the debate centers on whether non-bank platforms should be allowed to offer yields on stablecoin deposits. Jamie Dimon, chief executive officer of JPMorgan, demanded that these platforms be subject to the same standards that govern traditional banks: capital reserves, liquidity, regulatory reporting and anti-money laundering rules.
The banks’ argument is that yields offered by crypto platforms are functionally equivalent to interest on deposits, which would justify equivalent oversight. The sector also warned that these products could divert deposits away from the conventional banking system if permitted without restrictions.
