Ripple CEO Urges Clear Crypto Regulations in Bill

Ripple CEO Brad Garlinghouse has publicly advocated for the immediate passage of the U.S. crypto-asset market structure bill, known as the CLARITY Act, despite acknowledging its imperfections. Garlinghouse stated on January 16, 2026, that clarity is better than chaos, emphasizing the need for clear rules in the evolving cryptocurrency industry to enable market function and foster innovation. His stance emerges amidst a divided industry, with other major players like Coinbase withdrawing support for the bill due to various concerns.

He argued that even an imperfect bill provides a crucial starting point for mainstream policy discussions and offers more certainty than the current regulatory ambiguity.

Garlinghouse’s comments were made in the context of a surprise delay in the bill’s progress in the Senate, which followed Coinbase CEO Brian Armstrong’s decision to withdraw his company’s support. Armstrong cited issues such as a de facto ban on tokenized stocks, restrictions on decentralized finance (DeFi), weakened CFTC authority, and potential limitations on stablecoin reward features as reasons for their opposition.

The push for clear crypto regulations comes after years of an inconsistent U.S. regulatory environment marked by enforcement actions rather than comprehensive frameworks. According to a July 18, 2025, report by Ocorian, 2025 was anticipated as a breakthrough year for digital asset legislation, with the House passing several bills, including the GENIUS Act, which became law to establish a federal framework for dollar-backed stablecoins.

Experts suggest that regulatory clarity can boost innovation and adoption by instilling confidence in investors and businesses. Arca Labs proponents argue that universal parameters help create clarity, lead to wider adoption, and spur innovation, while the continued lack of clear regulation can have detrimental consequences for the industry.

DFPI Commissioner KC Mohseni, in the context of a January 15, 2026, penalty against Nexo for unlicensed crypto loans, emphasized that Lenders must follow the law and avoid making risky loans that endanger consumers — and crypto-backed loans are no exception. This highlights the ongoing regulatory focus on applying existing consumer protection laws to the crypto sector.

Ripple‘s consistent advocacy for regulatory clarity stems from its experience navigating a protracted $150 million lawsuit with the SEC, which concluded in August 2025. Garlinghouse asserted that the entire sector deserves the same clarity his company fought to achieve, believing it is essential for the market to function effectively.

He views the CLARITY Act as a pragmatic step forward, allowing the industry to engage constructively with lawmakers to refine legislation rather than abandon efforts due to initial imperfections. This approach prioritizes establishing a foundational rulebook over waiting for a perfect bill.

The precise timeline for the CLARITY Act’s passage through the Senate remains uncertain following Coinbase‘s withdrawal of support and the subsequent postponement of a scheduled Senate markup on January 15, 2026. Details regarding potential revisions to the bill to address Coinbase‘s concerns are also not publicly known.

The debate over the CLARITY Act is expected to continue, shaping the operational landscape for blockchain companies, investors, and developers in the U.S. Ripple and other industry participants are urged to remain engaged in discussions with lawmakers to propose improvements. The outcome will influence how digital assets are classified and regulated, potentially impacting market stability and fostering greater institutional participation.

Individuals and entities involved in the cryptocurrency space should closely monitor legislative developments concerning the CLARITY Act and other proposed regulations. Staying informed about changes to regulatory frameworks is crucial for understanding compliance obligations and market shifts. Engaging with industry associations can also provide insights into collective advocacy efforts and potential impacts on specific crypto activities.