The post Ripple CEO Backs CLARITY Act Progress, Warns Too Many Stablecoins Are ‘Useless’ appeared first on Coinpedia Fintech News
Ripple CEO Brad Garlinghouse has taken a neutral stance in the growing debate around the CLARITY Act, saying the company is not actively involved in the ongoing industry clash.
He also warned that the growing number of similar USD stablecoins adds little value, arguing that only transparent and regulated players will survive.
Ripple Staying Neutral in CLARITY Act Fight
Speaking at the FII PRIORITY Miami summit, Brad Garlinghouse said Ripple does not have “a big dog in this fight” when it comes to the CLARITY Act. The company is intentionally staying on the sidelines while others who are more involved handle the discussions.
Still, he said the support from the White House is very important and believes the bill will eventually move forward. According to him, many industry participants are frustrated after repeated delays, but negotiations are still active.
He added that there is a growing urgency to finalize the framework, with hopes that something could reach the finish line by the end of May.
Too Many Stablecoins Are Useless
Garlinghouse also talked about stablecoins and said the market does not need too many USD-backed stablecoins that all do the same thing. To succeed, he outlined three key requirements, trust, regulation, and transparency
As the market matures, projects lacking strong compliance standards are likely to disappear, while institution-focused stablecoins gain dominance.
He also revealed that Ripple was once minting a large portion of USD Coin, which is why launching a Ripple stablecoin made sense, especially after USDC briefly lost its dollar peg during the Silicon Valley Bank crisis.
Lawmakers Moving Closer to Crypto Regulation
Meanwhile, US Senate Banking Chair Tim Scott said lawmakers from both political parties are making progress on crypto market structure rules. Companies like Coinbase are still part of the discussions, and negotiations are ongoing.
With lawmakers moving closer to agreement and industry players still negotiating, the outcome of the CLARITY Act could shape stablecoin competition, institutional adoption, and crypto regulation in the coming months.
If passed, it could become one of the most important crypto regulation laws and bring long-awaited clarity to the industry.