Brad Garlinghouse Anticipates Regulatory Clarity for Stablecoins in 2024, Highlights Utility and Industry Impact

Ripple Labs CEO Brad Garlinghouse anticipates that regulatory clarity for stablecoins will emerge in 2024. In an interview with CNBC International, Garlinghouse predicts that the U.S. government will establish clear guidelines for the stablecoin industry this year, particularly citing the potential passage of the Clarity for Payment Stablecoins Act.

Garlinghouse states:

"I think this year there will be legislation that passes. I won’t be as predictive about which one I think, but the likelihood is that the [Clarity for Payment Stablecoins Act] – I can’t remember the name of the bill that has been going through the system in Washington DC – but I think we will see that in part because the US Treasury wants it."

He emphasizes the importance of regulatory clarity for stablecoins, noting their role in addressing real-world needs. According to Garlinghouse, the stablecoin market has surprised many by solving significant challenges, and establishing regulatory clarity is beneficial for the entire crypto industry.

Garlinghouse expresses confidence in the stability of major stablecoins like USDT and USDC, suggesting they are here to stay. He also anticipates new entrants in the stablecoin market.

The Clarity for Payment Stablecoins Act, proposed in the previous year, aims to mandate stablecoin issuers to hold reserves associated with dollar-pegged digital assets in U.S. dollars, government securities, or fully collateralized repurchase agreements.