Bankers Block Crypto Industry's Landmark Legislative Victory
The cryptocurrency industry has invested heavily in building its influence in Washington, but a landmark legislative victory may be slipping away due to opposition from bankers. Senators' hometown lenders are mounting an aggressive campaign to amend a key part of the Clarity Act, which would create a new regulatory framework for digital assets.
Utah GOP Sen. John Curtis acknowledged that he likes crypto, but also his banks, and wants them to find common ground. Sen. Mike Rounds (R-S.D.) has pledged to vote to advance the bill, but signaled support for making bank-favored changes on the floor.
The main concern of bankers is the risk of stablecoin rewards programs leading their customers to pull billions out of checking and savings accounts, threatening their business model. Crypto supporters argue that these warnings are exaggerated and Congress has already settled the issue with a bipartisan compromise.