CLARITY Act timeline pushed to May 2026 as XRP rules hinge on rewards
Ripple CEO Brad Garlinghouse says the US CLARITY Act could be signed by the end of May 2026, delaying his earlier end-April expectation. The main sticking point remains unresolved policy details—especially how crypto “rewards” should be regulated.
Garlinghouse said talks are still progressing and he expects compromise. He warned that unclear rules could push crypto businesses and investment overseas. Conversely, a clearer framework may reduce uncertainty for future US regulators and encourage major banks to re-engage with crypto.
For XRP, Garlinghouse expects limited direct day-to-day impact, but potentially meaningful indirect effects: more bank confidence and smoother institutional adoption, building on Ripple’s legal momentum, including a prior court ruling that XRP is not a security. Traders’ focus is on the CLARITY Act as a US regulatory catalyst, though the shift to late May lowers near-term timing certainty.
Separately, Ripple reported operational expansion (headcount +50% and two acquisitions) and highlighted growth priorities like Ripple Prime and Ripple Treasury.
Neutral
The update is a mixed signal for XRP. On one hand, a clearer US regulatory framework via the CLARITY Act could strengthen compliance confidence for banks and boost the probability of more institutional XRP use—an underlying bullish tailwind supported by prior legal momentum (XRP not a security). On the other hand, the delay to late May 2026 reduces near-term catalyst timing and can dampen short-term positioning ahead of legislation. Net effect: likely neutral for XRP price action, with traders watching whether “rewards” policy details move toward resolution and whether bank participation expectations build or fade.