TLDR
- Ripple CEO Brad Garlinghouse called on the Senate to pass the CLARITY Act, describing it as a serious policy deal.
- Treasury Secretary Scott Bessent praised the final text, saying it protects community banks and US stablecoin leadership.
- The bill includes ethics provisions, developer protections, and a Treasury circuit breaker for stablecoin deposit flight.
- Senate Democrats are reportedly preparing a counterproposal, which has lowered the odds of the bill passing.
- Bernstein says Democratic support could lift crypto prices, while a failed vote could trigger a market drop.
Ripple CEO Brad Garlinghouse is pushing the US Senate to pass the CLARITY Act. He says the bill is not a compromise but a serious policy deal built through real negotiation.
His comments followed remarks from Treasury Secretary Scott Bessent. Bessent praised the final text of the bill, saying it protects US leadership in stablecoins.
What Garlinghouse Told Senators
Garlinghouse quoted Bessent directly in his message to lawmakers. He said the bill reflects trades policymakers made to reach an agreement.
He repeated a line he has used before. He said “perfect can’t be the enemy of good” when describing the final text.
Garlinghouse also noted that President Trump agreed to ethics provisions included in the bill. These provisions are part of the latest draft alongside developer protections.
The bill also includes a Treasury circuit breaker. This tool would activate if payment stablecoins pull deposits away from community banks.
Garlinghouse said senators worked hard on this text. He argued they should not view it as something they are merely settling for.
He said it is a deal that lawmakers should stand behind. He added that the world and voters are watching the outcome.
He also pointed out that the Senate vote could affect how the crypto industry and its supporters vote in the midterm elections.
Bessent’s Comments on Community Banks
Bessent said the CLARITY Act is part of a wider strategy that started with the GENIUS Act. He said Congress passed GENIUS to keep stablecoin infrastructure inside the United States.
He said the Trump administration is focused on both digital technology and community banks. He called this a dual focus meant to support economic growth.
Garlinghouse also said crypto could help banks going forward. Bessent said supporting community banks has been a constant focus of his work.
Bessent said the final draft gives the Treasury secretary added authority. This authority would apply if deposit flight tied to stablecoins begins to hurt community banks.
He said he will use these tools without hesitation if stablecoins cause harm to community banks.
Senate Democrats are reportedly preparing a counterproposal to the current CLARITY Act text. Reports say the Democrats are unsatisfied with parts of the bill.
The pushback follows a meeting Democrats held with Senate Minority Leader Chuck Schumer. Following that meeting, the odds of the bill passing dropped after an earlier rise.
Bernstein said crypto markets currently show a bearish bias. The firm said this leaves room for a rebound if CLARITY Act developments turn positive.
Bernstein expects some Democrats to support the bill to meet the 60 vote requirement. Bloomberg reported that seven to ten Democrats sound open to eventually passing a bill, though public commitments remain limited.
Bernstein said Democratic support could lift prices for assets like Bitcoin, Ethereum and XRP. A failed vote, especially paired with hawkish Fed comments, could trigger a drop in crypto markets and crypto linked stocks.
