XRP slipped to $1.33 as the Digital Asset Market Clarity Act stalled in the U.S. Senate over a bitter dispute about whether crypto platforms can offer yield on stablecoin balances. With Coinbase rejecting the latest compromise draft and a Senate Banking Committee markup looming on April 13, the regulatory catalyst that Ripple CEO Brad Garlinghouse once called an institutional “unlock” is now a source of uncertainty for XRP holders navigating Extreme Fear market conditions.
CLARITY Act Stalls in Senate Over Stablecoin Yield Ban
The CLARITY Act cleared the House but hit a wall in the Senate Banking Committee over a single, contentious provision. The March 2026 draft explicitly prohibits digital asset service providers from offering yield “directly or indirectly” on stablecoin balances, or in any manner “economically or functionally equivalent to bank interest.”
The prohibition reflects pressure from traditional banks, which, according to unconfirmed reports circulating in crypto policy circles, have projected as much as $6.6 trillion in deposit flight if stablecoin yield products are permitted to compete with bank savings accounts.
Despite the deadlock, Senator Tim Scott struck an optimistic note: “We now have Republicans and Democrats working together. The White House agrees… I am very optimistic about where we are.” The next concrete milestone is the April 13 Senate Banking Committee markup, where lawmakers will decide whether to advance, amend, or shelve the bill.
The outcome carries weight beyond stablecoins. For projects like Ripple that have positioned regulatory clarity as a growth catalyst, continued stalling removes a key pillar from their bullish narrative, similar to how Morgan Stanley’s recent spot Bitcoin ETF fee announcement underscored the growing institutional demand for clear regulatory frameworks across crypto.
Coinbase Rejection Deepens the Deadlock
Coinbase escalated its opposition on March 26, 2026, rejecting the latest compromise version of the CLARITY Act via Senate office communications. The move was not surprising given CEO Brian Armstrong’s January 2026 stance that Coinbase would rather have no bill than a bad bill.
The financial stakes explain the intensity. Coinbase earned $1.35 billion in stablecoin revenue in 2025, roughly 20% of its total revenue. A blanket prohibition on stablecoin yield would directly threaten that revenue stream, making this an existential policy fight for the exchange.
Senator Cynthia Lummis, a key crypto advocate in the Senate, called for urgency in reaching a bipartisan deal:
Bipartisan compromise is necessary for the Clarity Act to pass. We're working around the clock to ensure stablecoin rewards are protected and to prevent deposit flight from community banks.
America's financial future is at stake now— we can't wait until 2030 for another chance.
— Senator Cynthia Lummis (@SenLummis) March 25, 2026
Source: @SenLummis on X
The clash between Coinbase and Senate negotiators mirrors broader tensions in crypto regulation, where industry participants increasingly reject compromise language they view as tilted toward incumbent financial institutions. As recent enforcement actions in Singapore have shown, the global regulatory environment is tightening from multiple directions simultaneously.
What the Regulatory Stall Means for XRP’s Outlook
XRP traded at $1.33 with a 24-hour decline of approximately 0.81%, extending a slide that has left the token roughly 64% below its all-time high of $3.65, reached on July 18, 2025. Market cap stood at approximately $81.37 billion with 24-hour trading volume of $1.18 billion.
The CLARITY Act delay matters specifically for XRP because Ripple CEO Brad Garlinghouse has framed the bill’s passage as an “unlock for the banks,” a regulatory green light that would trigger an institutional adoption wave for Ripple’s payment infrastructure. With the bill stalled, that catalyst is on hold.
Adding to the uncertainty, former crypto czar David Sacks has departed his White House role, removing a key administration figure who had been involved in shaping the legislative approach. The departure raises questions about whether the White House will maintain the same level of engagement on the bill ahead of the April 13 markup.
Broader market sentiment offers no relief. The Crypto Fear & Greed Index sits at 9 out of 100, labeled “Extreme Fear,” reflecting a market environment where regulatory headwinds compound existing selling pressure. The dual weight of legislative uncertainty and bearish sentiment creates a challenging setup for XRP in the near term, a dynamic also visible across the altcoin market as large token holders accelerate OTC sales amid deteriorating conditions.
The April 13 Senate Banking Committee markup is the next event that could shift the trajectory. A favorable amendment to the stablecoin yield language could revive the institutional narrative Garlinghouse has built around XRP. A further delay, or a version that retains the blanket yield prohibition, would extend the overhang that has weighed on XRP’s regulatory premium since the Senate fight began.
With 61.34 billion XRP in circulating supply and no near-term resolution in sight, traders are watching April 13 as the concrete date that determines whether the CLARITY Act remains a potential catalyst or becomes another stalled chapter in crypto’s legislative history.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
