Ripple CEO Brad Garlinghouse believes there’s a 90% chance the Clarity Act, a bipartisan bill aiming to establish a legal framework for digital assets, will pass Congress this year. The prediction comes as traditional financial institutions increasingly signal a willingness to engage with cryptocurrencies, but express a need for regulatory clarity before fully committing. The potential passage of the Clarity Act could significantly impact the future of cryptocurrency regulation in the United States, offering a more defined path for businesses operating in the digital asset space.
Garlinghouse’s assessment, reported by multiple outlets, reflects a growing optimism within the crypto industry regarding the bill’s prospects. The Clarity Act, introduced in July 2023, seeks to define which digital assets are securities and which are commodities, assigning regulatory oversight to either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) accordingly. Currently, the lack of clear rules has created uncertainty and legal challenges for crypto firms, including Ripple, which has been embroiled in a long-running lawsuit with the SEC.
Banks Increasingly Crypto-Friendly, Demand Regulatory Framework
The shift in attitude from traditional banks is a key factor driving the momentum behind the Clarity Act. As noted in recent reports, institutions that once viewed cryptocurrencies with skepticism are now exploring ways to integrate them into their services. According to a report from February 23, 2026, by Finanza Digitale, even Intesa Sanpaolo has begun offering Bitcoin to its clients. This change is largely driven by customer demand, with a growing number of investors seeking exposure to digital assets. However, banks are hesitant to fully embrace crypto without a clear regulatory framework.
“The market crypto surpasses 3 trillion dollars, and banks can no longer stay out,” the Finanza Digitale report states, highlighting the economic significance of the industry. Several Italian banks are now considered “crypto-friendly,” offering services ranging from crypto trading to custody solutions. Fineco Trading, Revolut, and Trade Republic are highlighted as leading options for investors looking to buy cryptocurrencies, offering competitive fees and user-friendly platforms.
The Clarity Act: Key Provisions and Potential Impact
The Clarity Act aims to address the regulatory ambiguity that has plagued the crypto industry. Currently, the SEC and CFTC often disagree on which agency has jurisdiction over specific digital assets, leading to conflicting regulations and enforcement actions. The bill proposes a clear definition of “digital assets” and establishes a framework for determining whether an asset is a security or a commodity. Assets deemed securities would fall under the SEC’s purview, while commodities would be regulated by the CFTC.
Specifically, the bill defines a “digital asset” as “a record that is stored electronically and represents a unit of value.” It then outlines criteria for determining whether a digital asset is a security, focusing on whether it represents an investment contract, a debt instrument, or a share of ownership in a company. The Clarity Act also addresses the issue of stablecoins, proposing a regulatory framework for their issuance and redemption.
Ripple’s Perspective and Ongoing Legal Battle
Ripple, a provider of real-time gross settlement system, currency exchange and remittance network, has been a vocal advocate for the Clarity Act. The company’s ongoing legal battle with the SEC, which alleges that Ripple’s XRP token is an unregistered security, underscores the need for regulatory clarity. A favorable outcome for Ripple in the Clarity Act could significantly reduce the legal risks facing the company and pave the way for broader adoption of its technology.
The SEC filed its lawsuit against Ripple in December 2020, alleging that the company raised over $1.3 billion through an unregistered securities offering. Ripple has argued that XRP is not a security and that the SEC’s claims are based on a flawed interpretation of the law. The case has been closely watched by the crypto industry, as it could set a precedent for how digital assets are regulated in the United States.
Global Regulatory Trends and the Role of Trust Banks
The push for regulatory clarity in the U.S. Mirrors a global trend. Regulators around the world are grappling with how to regulate cryptocurrencies, with some countries taking a more permissive approach than others. Recent developments also suggest a move towards integrating crypto firms into the traditional banking system. A report from CoinDesk highlights that Ripple, Circle, and BitGo are among five crypto firms poised to become trust banks, further solidifying the industry’s connection to traditional finance.
The Bank of Italy has also issued warnings regarding the risks associated with virtual currencies, emphasizing the need for caution and due diligence. The bank’s advisory, published on its website, underscores the volatile nature of these assets and the potential for fraud. The Bank of Italy’s warning serves as a reminder of the importance of understanding the risks before investing in cryptocurrencies.
As the regulatory landscape evolves, the crypto industry is likely to notice further consolidation and innovation. The Clarity Act, if passed, could provide the certainty needed for businesses to thrive and for investors to participate with confidence. The next key checkpoint will be a vote on the bill in the House Financial Services Committee, currently scheduled for March 2026.
This article provides information for general knowledge and informational purposes only, and does not constitute investment advice. Cryptocurrency investments are inherently risky, and investors should conduct thorough research and consult with a qualified financial advisor before making any decisions.
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