Garlinghouse Predicts Clarity Act Passage by May 31, 2026
Ripple CEO Brad Garlinghouse has revised his forecast for the passage of the CLARITY Act, now projecting the landmark U.S. crypto legislation will be finalized by the end of May 2026. Speaking on March 27, Garlinghouse attributed the month-long shift from his previous April 30 target to ongoing bipartisan negotiations in the Senate. Despite the delay, he expressed strong optimism, noting that stakeholder exhaustion often precedes compromise. The decentralized prediction market Polymarket reflects this sentiment, placing the odds of the act passing in 2026 at 60%.
Garlinghouse emphasized the critical need for this legislation to be codified into law, aiming to prevent what he termed another "Gensler moment," a reference to former SEC Chair Gary Gensler's litigation-heavy approach. By establishing clear rules, Garlinghouse argues the industry can avoid the "weaponization of policy" for political purposes and instead focus on innovation. He believes the bill's passage will "unlock" U.S. banks that have hesitated to engage with digital assets, significantly expanding institutional participation.
Acquisitions Drive Record Growth, Tripling Revenue Run Rate
Concurrent with the regulatory push, Ripple's core business is demonstrating significant strength, with Garlinghouse touting a "record" first quarter for 2026. This expansion is largely driven by the successful integration of its acquisitions, Ripple Treasury and Ripple Prime. These units have exceeded expectations, with Ripple Prime alone tripling its revenue run rate and strengthening the company's foothold with major financial institutions.
To support this momentum, Ripple has undertaken a significant operational expansion, increasing its headcount by 50% and deploying over $1 billion in investments. The company's current strategy focuses on integrating these businesses to unlock synergies rather than launching new ventures. The stated goal is to deepen corporate adoption of its cross-border payment solutions and expand its brokerage services, reinforcing the utility of the XRP ledger.
Ripple Signals Future Stablecoin Launch After Minting 20% of USDC
Garlinghouse also provided insight into Ripple's strategic positioning within the stablecoin market, revealing the company was previously responsible for minting 20% of all USDC. He argued that it would be a logical step for Ripple to launch its own stablecoin, leveraging its strong balance sheet to create a "very compliant" and "institution-focused" product. This move would capitalize on the company's extensive experience and reputation for transparency, addressing the industry's need for trusted and regulated dollar-pegged assets. The CEO suggested that a proliferation of dozens of USD-based stablecoins is unnecessary, instead favoring a few highly credible options.
