Banking and Crypto Industries Clash Over Regulatory Bill
Washington D.C. - The banking and crypto industries are at odds over the Digital Asset Market Clarity (CLARITY) Act, a bill backed by congressional Republicans and President Donald Trump. Banks have been pushing back aggressively against the legislation, which would establish a regulatory framework for cryptocurrencies.
The banking industry is worried that crypto firms should be allowed to offer rewards programs that pay yield to customers who hold stablecoins, a form of cryptocurrency designed to maintain a value of $1. This could lead customers to pull billions of dollars out of checking and savings accounts, threatening the business model of banks.
The crypto industry has spent at least $14.6 million in 2025 lobbying for the bill, according to the Washington Examiner. The Blockchain Association and Coinbase have been among the groups advocating for the legislation, with Coinbase CEO Brian Armstrong calling it a 'win' for the future of America as a global leader for finance, innovation, and national security.
However, some Republican senators are hesitant to support the bill due to concerns from the bank industry. Senators Josh Hawley and John Curtis have expressed worries about the effect on community banks, with Curtis stating 'I want to support crypto, I like crypto. I also like my banks.'