Ripple CEO Brad Garlinghouse has backed a fresh push for U.S. crypto legislation after Treasury Secretary Scott Bessent urged Congress to move the CLARITY Act forward. Garlinghouse shared Bessent’s message on X and wrote, “Progress > Perfection,” aligning himself with the call for a federal market structure bill for digital assets.
Bessent said Congress should act after years of debate over crypto rules in the United States. He said the current system remains unclear, and he argued that clearer federal standards would help keep crypto development and investment inside the country.
SEC Chair Paul Atkins also backed the legislative push. In a post on X, Atkins said, “Project Crypto is designed so once Congress acts, @SECGov & @CFTC are ready to implement the CLARITY Act.” He added that Bessent was right and said it was time for Congress to advance market structure legislation to President Trump’s desk.
Bessent Renews Push for Federal Crypto Rules
In an opinion piece published by The Wall Street Journal, Bessent said the U.S. needs a workable framework for digital asset markets. He said the lack of clear rules had a clear effect on the industry. According to his remarks, more crypto activity moved to jurisdictions such as Abu Dhabi and Singapore, where firms could understand licensing and compliance rules.
Bessent wrote, “The regulatory framework for digital asset markets is unclear.” He added that firms abroad often knew how to register and operate, while U.S. companies faced more legal risk. He also urged lawmakers to move the CLARITY Act through committee and send it to President Donald Trump for approval.
The bill has been a key priority for the crypto industry for years. Companies in the sector have said current laws do not fit digital assets well. They have also argued that new legislation would provide legal clarity and allow firms to build in the U.S. with less uncertainty.
The House of Representatives passed its version of the bill in July. Still, the measure has remained stuck amid disputes over how it should treat stablecoin rewards and similar products. That debate has kept the broader market structure effort from moving faster.
Garlinghouse Signals Support as Stablecoin Debate Grows
Garlinghouse’s public support gave the latest push more visibility across the crypto sector. His post did not add new policy details, but it reinforced the industry view that movement on legislation matters more than waiting for a perfect final text. That message came as lawmakers continued to debate the scope of the bill.
One of the main sticking points involves yield on stablecoins. The banking industry has pushed for language that would block exchanges, brokers, and affiliates from offering returns that resemble interest on stablecoin balances. Supporters of that approach say it would protect traditional bank funding.
Crypto firms have pushed back on those efforts. They argue that the bill should not go beyond limits already set under existing stablecoin law. The debate now centers on whether the CLARITY Act should close what critics call a three-party model loophole, where non-issuers can still offer reward-like returns tied to stablecoins.
White House Report Challenges Bank-Backed Yield Ban
A new White House report has added fresh data to that debate. Released on April 8 by the Council of Economic Advisers, the report said a wider yield ban would do very little to increase bank lending. It said the effect would be small even if lawmakers extended restrictions beyond issuers to platforms and affiliates.
Under the report’s baseline model, total bank lending would rise by only $2.1 billion. That equals about 0.02% of outstanding loans. Around 76% of that gain would go to the largest banks. Community banks, defined as those with under $10 billion in assets, would see about $500 million more in lending capacity.
The report also tested more aggressive assumptions that favored the banking sector. Even then, the maximum increase in total lending reached $531 billion, or about 4.4% of projected 2025 fourth-quarter loan volumes. For community banks, the best-case gain reached 6.7%.
The report stated, “In short, a yield prohibition would do very little to protect bank lending, while forgoing the consumer benefits of competitive returns on stablecoin holdings.” That finding may shape the next stage of CLARITY Act negotiations as lawmakers weigh how far the bill should go.
