Ripple CEO Predicts Clarity Act Passage in May, Boosting Institutional Participation

Ripple CEO Brad Garlinghouse has expressed optimism about the passage of the Digital Asset Market Clarity Act, which he believes could happen as early as May.

The bill, aimed at bringing clarity to the US crypto market, has been delayed due to disagreements and frustration between traditional banks and crypto companies. However, recent talks suggest that both sides are closer to finding common ground.

According to Garlinghouse, ongoing discussions have led to a turning point, where compromise is more likely. He believes this momentum will carry over into the coming weeks, paving the way for faster progress.

The Digital Asset Market Clarity Act seeks to establish clear rules for trading platforms, stablecoins, and decentralized finance (DeFi). It aims to define whether digital assets are securities or commodities and assign responsibility accordingly, reducing confusion between regulators.

Passage of the bill could have significant implications for the industry, with Garlinghouse predicting that it will open doors for more institutional participation. This, in turn, may encourage innovation within the US instead of driving companies abroad.