Crypto CEOs press Lutnick on CLARITY Act before Sept. 15 vote

Ripple CEO Brad Garlinghouse and three other crypto executives met Commerce Secretary Howard Lutnick on Aug. 19 to push the CLARITY Act, with the Senate's first procedural vote set for Sept. 15.

The group discussed how the bill's passage could boost U.S. job creation and economic growth, and help draw crypto companies and founders that moved overseas back to the U.S., according to two sources cited by Eleanor Terrett, host of Crypto in America, who first reported the meeting.

The CLARITY Act, formally the Digital Asset Market Clarity Act, cleared the Senate Banking Committee in a 15-9 bipartisan vote in May. The bill has since stalled over unresolved ethics provisions tied to President Donald Trump's crypto business, along with disagreements on decentralized finance rules and illicit finance controls. Coinbase disclosed $1.07 million in federal lobbying spending in Q1 2026, with the CLARITY Act among the issues covered.

For XRP, trading at $1.15, the bill's passage would establish clearer boundaries between digital commodities and securities, potentially reducing legal uncertainty for Ripple after its years-long SEC battle. The Senate is set to hold its first procedural vote on Sept. 15 after the August recess, with Senator Cynthia Lummis pressing Democrats to back the legislation.

Ethics provisions remain the sticking point

The meeting with Lutnick came ahead of a White House event where President Trump addressed crypto industry leaders. The executives discussed how the White House could help lawmakers find a path toward bipartisan support, with ethics rules tied to Trump's crypto business among the most difficult unresolved issues.

Senate Banking Committee Chairman Tim Scott released a 309-page substitute text on May 12. Five major U.S. banking groups opposed the stablecoin compromise before the committee markup, arguing the restrictions did not go far enough. The bill subsequently moved to the Senate Legislative Calendar, making it eligible for floor consideration once Senate leaders schedule debate.

The legislative process still requires reconciling work from the Senate Banking and Agriculture committees. Democratic Senator Ron Wyden separately pressed Senate leaders in July to preserve Section 604, known as the Blockchain Regulatory Certainty Act, which would protect certain non-custodial blockchain developers from being treated as money transmitters when they do not control customer funds.

Coinbase's return to support

Armstrong's presence at the Lutnick meeting followed a months-long shift in Coinbase's position. The exchange withdrew support for an earlier Senate version in January over concerns about stablecoin rewards, tokenized equities and rules affecting decentralized finance. By April, Armstrong had renewed support after Treasury Secretary Scott Bessent urged Congress to advance the legislation.

Negotiations then produced a stablecoin rewards compromise that helped move the bill toward the May committee vote. The compromise allowed rewards tied to customer activity while restricting passive payments for simply holding stablecoins, an issue that had become a main point of disagreement between crypto companies and the banking industry.

What CLARITY means for XRP

For Ripple, the stakes are particularly high. The company spent years in litigation with the SEC over whether XRP constitutes a security. A clearer federal framework for classifying digital assets could give Ripple and other crypto companies greater confidence to develop blockchain-based financial products in the U.S. market.

If the CLARITY Act establishes clearer boundaries between digital commodities and securities, it could reduce uncertainty for institutions entering the crypto market, creating a more favorable environment for Ripple's payments, stablecoin and tokenization businesses.

The Sept. 15 procedural vote will test whether White House pressure and industry lobbying can overcome the partisan divide. If the bill clears the Senate, it would mark the most significant U.S. crypto market structure legislation to date, with implications for every token classified under the new framework.

This article is for informational purposes only and does not constitute investment advice.