Brad Garlinghouse’s Prediction on the CLARITY Act’s Passage and Its Impact on the XRP Price

Brad Garlinghouse once again expects the CLARITY Act to pass by the end of May 2026. If he is right this time, XRP could see a fundamental revaluation. 

If he is wrong again, the token may face another extended period of uncertainty. Here is what Garlinghouse said, why the bill keeps stalling, and what it means for XRP’s price.

Key Takeaways

• Garlinghouse predicts CLARITY Act passage by the end of May 2026.
• The stablecoin yield dispute, which held up the bill, is nearing resolution.
• XRP price could target $5 to $8 if the bill passes, but may fall to $1.2 if it fails.

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Garlinghouse’s Latest Prediction on the CLARITY Act

Speaking at the Semafor World Economy Summit in Washington on April 13, 2026, Brad Garlinghouse told the audience that the long awaited CLARITY Act may soon become law. 

He pointed to the stablecoin yield dispute between banks and crypto firms, which has stalled the bill since January, as the main obstacle that is now close to being resolved.

“When people are at their peak frustration, that is when they finally compromise, and it gets done,” Garlinghouse said. “I think we are there.”

This is the third time the Ripple chief executive has adjusted his forecast. Back in February, he appeared on Fox Business and put the odds of the CLARITY Act clearing the Senate at 80% by the end of April. 

On March 27, at the FII Priority Miami Summit, he pushed the timeline to the end of May. At the Semafor event on April 13, he reconfirmed that same end of May window.

The CLARITY Act, if passed, would make XRP’s commodity status permanent federal law. This would end years of regulatory uncertainty that began when the Securities and Exchange Commission sued Ripple in 2020. 

A federal judge ruled in 2023 that XRP is not a security when sold to the public, but the legal fight left lingering questions. The CLARITY Act would settle those questions once and for all.

Read also: Earn Passive Income with XRP: Flare Yield Strategies

Why the Bill Has Been Delayed Despite Growing Support

One issue has held up the entire bill since January: whether crypto platforms like Coinbase should be allowed to pay interest-like rewards on stablecoin balances. 

Banks argue that letting stablecoins compete with savings accounts would drain deposits out of the traditional banking system. Crypto firms say banning yield gives banks an unfair advantage while costing consumers money.

Senators Thom Tillis and Angela Alsobrooks reached a compromise on March 20. The draft banned passive yield, meaning earning returns simply for holding stablecoins, but allowed activity based rewards tied to payments and platform use. 

Coinbase rejected that draft on March 25. However, the exchange reversed its position two weeks later.

What changed? A White House Council of Economic Advisers report found that a full ban on stablecoin yields would cost consumers roughly $800 million annually while adding just 0.02% to total United States bank lending. That finding appears to have softened opposition significantly.

Coinbase chief executive Brian Armstrong endorsed the bill on April 9 after blocking it twice. Treasury Secretary Bessent published a Wall Street Journal op-ed backing the bill the same day. 

Securities and Exchange Commission Chair Atkins and former White House crypto czar also called on Congress to act. Support is no longer fringe.

Read also: XRPFi Explained: How Flare Unlocks DeFi for XRP

What Garlinghouse Is Saying About XRP Beyond the Bill

At the same Semafor event, Garlinghouse also delivered a pointed critique of traditional finance infrastructure. He argued that global payments are still running on outdated systems.

“I imagine everyone here has done a SWIFT enabled transaction. You call it a wire transfer,” Garlinghouse said. 

Garlinghouse made it clear that Ripple’s real goal extends beyond competing with SWIFT. 

“Do we compete with SWIFT? Yes. But at the core, what Ripple is trying to do is let value move the way information moves today.”

To simplify the concept, he compared today’s financial system to the early days of the internet. He recalled having a Prodigy account, an AOL account, and a CompuServe account. 

“You could not email between CompuServe and AOL. That was not possible.” Back then, platforms were closed ecosystems. 

Garlinghouse argued that payment networks operate the same way today: fragmented, slow, and not fully interoperable. Ripple, using XRP, aims to create that internet moment for money, where value can move freely across networks without friction.

Read also: Guide to XRP for Beginner: How to Buy, Sell, Trade, and Stake on Bitrue

XRP Price Impact: What Analysts Expect

XRP is currently trading near $1.39, showing a 4% gain over 24 hours. The token has been holding above the critical $1.30 psychological support level, which has acted as a floor through multiple retests since March. 

Trading volume remains elevated relative to the 30 day average, suggesting accumulation may still be ongoing.

The price outlook is binary. Analysts have outlined a bull case that could push XRP toward $5 to $8 on confirmed passage of the CLARITY Act. This would be driven by institutional inflows unlocked by permanent commodity status clarity. 

Standard Chartered has set an $8 target under similar conditions: full legislative passage plus broader macroeconomic recovery.

The $10 figure that has circulated on crypto social media assumes a maximum institutional re rating in the months following passage. Industry observers note that this is possible but not a consensus forecast.

If the CLARITY Act passes in May, XRP would need to test the $2 level through the third quarter of 2026 as institutional desks begin allocating. However, another delay or outright legislative failure could push XRP back toward $1.2.

Immediate resistance sits at $1.5. A weekly close above that level would shift momentum indicators bullish heading into the May catalyst window.

FAQ

What is the CLARITY Act?

The CLARITY Act is proposed United States legislation that would make XRP’s commodity status permanent federal law, ending regulatory uncertainty about whether XRP is a security.

What did Brad Garlinghouse predict about the CLARITY Act?

Garlinghouse predicted the bill would pass by the end of May 2026. He originally predicted 80% odds of passage by the end of April, then pushed the timeline to the end of May.

What is holding up the CLARITY Act?

The main obstacle has been the stablecoin yield dispute, specifically whether crypto platforms should be allowed to pay interest like rewards on stablecoin balances. Banks and crypto firms have been negotiating a compromise.

How could the CLARITY Act affect XRP price?

If the bill passes, analysts expect XRP could reach $5 to $8, driven by institutional inflows. If the bill fails or is delayed further, XRP could fall back toward $1.2.

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