Ripple (CRYPTO: XRP) CEO Brad Garlinghouse raised his Clarity Act odds to 90% by end of April following a White House meeting Thursday between crypto and banking leaders.
The White House Meeting
Ripple Chief Legal Officer Stuart Alderoty, Coinbase (NASDAQ:COIN) Chief Legal Officer Paul Grewal, a16z’s Miles Jennings, and banking representatives met at the White House Thursday morning to negotiate the stablecoin yield dispute.
“I think it’s now 90% it will pass by the end of April,” Garlinghouse said. “I had said a couple weeks ago, I thought end of April at the time, people thought that was a little optimistic.
There’s a meeting today with a lot of leaders on both sides, the crypto and banking in the White House.”
The 10-point jump from 80% to 90% signals Garlinghouse sees meaningful progress from the discussions.
Coinbase CEO Brian Armstrong told CNBC there’s now “a path forward where we can get a win-win-win outcome here. A win for the crypto industry, a win for the banks and a win for the American consumer.”
The Stablecoin Yield Dispute
Banks want a broad ban on stablecoin yields, arguing crypto firms shouldn’t distribute interest to users.
Crypto firms counter that such a ban stifles innovation and gives traditional banks an unfair advantage.
The Digital Chamber proposed a compromise: exempt stablecoin yields when users participate in activities like liquidity provision and staking, rather than a blanket ban. Whether banking representatives accept this proposal remains unclear.
The White House set an end-of-February deadline for compromise. With that approaching, Treasury Secretary Scott Bessent urged Congress last week to pass the bill this spring.
Senator Bernie Moreno (R-Ohio), a Senate Banking Committee member, also said at Tuesday’s World Liberty Forum the bill could pass by April.
The Prediction Market Reaction
On Kalshi, odds that the Clarity Act becomes law before June briefly spiked to 85% Thursday morning from 39% Wednesday evening following Armstrong and Moreno’s statements.
However, odds quickly slid back to 46% after the surge.
Odds the bill passes before 2027 hovered around 71% Thursday, down from an overnight high of 87%.
The volatility suggests traders remain uncertain despite optimistic rhetoric from industry leaders.
Image: Shutterstock
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