The CLARITY Act, a significant piece of legislation aimed at establishing a clearer regulatory framework for cryptocurrency in the U.S., has faced significant hurdles in 2026. The primary opposition came from Coinbase CEO Brian Armstrong, who had publicly stood against the bill. However, in a surprising turn of events on April 9, Armstrong endorsed the legislation, effectively removing the last major obstacle blocking its path to a Senate vote.
Coinciding with Armstrong’s endorsement, U.S. Treasury Secretary Scott Bessent published an op-ed in the Wall Street Journal, urging the Senate to pass the CLARITY Act before the impending midterm elections. Bessent framed the bill as essential to national security, pointing out that many blockchain developers and crypto companies are relocating to jurisdictions like Singapore and Abu Dhabi due to their clearer regulatory landscapes. He emphasized that with one in six Americans now owning digital assets, there is a pressing need for defined federal rules governing these platforms.
Hours following Bessent’s remarks, SEC Chairman Paul Atkins announced that regulatory bodies, including the SEC and CFTC, are prepared to implement the legislation as soon as Congress takes action. This dual endorsement from key governmental figures has positioned the bill for a potential breakthrough.
The Senate Banking Committee is set to reconvene on April 13, offering a narrow two-week window to advance the CLARITY Act before attention shifts to the midterm election calendar. Should the committee successfully mark up the bill, it would solidify XRP’s classification as a commodity, thereby providing the legal framework necessary for institutions to conduct cross-border payments using Ripple’s network.
Armstrong’s reversal on the CLARITY Act is particularly noteworthy considering his previous opposition, which was rooted in concerns over how the bill would regulate stablecoin yield. Coinbase has reported generating approximately $1.35 billion annually from its USDC rewards program—providing users with returns significantly higher than traditional bank savings accounts. Initially, Armstrong had articulated that he would prefer no bill to one that prioritized bank profits at the expense of consumers.
A compromise reached by Senators Thom Tillis and Angela Alsobrooks in March attempted to address these concerns by banning passive yield while permitting activity-based rewards tied to payments and platform engagement. However, Armstrong and Coinbase rejected this compromise, asserting that the language remained overly restrictive.
A pivotal turning point occurred the day before Armstrong’s endorsement, when a report from the White House Council of Economic Advisers revealed that a full ban on passive stablecoin yield could cost consumers $800 million annually with minimal protection for bank deposits. This report likely influenced Armstrong’s decision to support the CLARITY Act.
With both the SEC and Treasury backing the bill, the pressure is mounting on the Senate to act decisively. CFTC Chair Michael Selig highlighted that the legislation would safeguard the crypto industry from potential reversals in regulatory direction by future administrations.
As the situation evolves, the stakes for XRP remain high. If the CLARITY Act advances through the Senate, it could not only secure XRP’s classification but also pave the way for banks to leverage Ripple’s network for international payments. Conversely, should the bill falter for a third time, it risks sending XRP’s price to lower levels, possibly dropping below the one-dollar mark.
The upcoming weeks are critical, as the outcomes from the Senate Banking Committee and broader geopolitical developments may significantly influence XRP’s price trajectory.
