Banks Accused of Obstructing CLARITY Act Progress Ahead of Senate Vote

Senator Cynthia Lummis has accused banks of trying to sabotage the CLARITY Act, which aims to provide a clear regulatory framework for digital assets in the US. The bill, also known as the Digital Asset Market Clarity Act, defines what constitutes securities and commodities under the authority of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), respectively.

The CLARITY Act has stalled once before this summer, but lawmakers are now eyeing a fresh attempt on September 15. Lummis claims that banks are using their leverage to demand changes to the bill's text as a precondition for support, which she frames as deliberate obstruction rather than good-faith negotiation.

The disagreement over stablecoin interest is one of the main sticking points in the negotiations. Banks worry that if crypto platforms are allowed to pay rewards on stablecoins, deposits could flow out of traditional banking accounts and into digital wallets. Crypto firms counter that banks want the perks of competing in digital finance without accepting the same regulatory burden.

Market sentiment for Bitcoin is cautious due to legislative uncertainty surrounding the CLARITY Act. Prediction markets show low confidence that the price will reach $200,000 by December 31, 2026. The lack of clear regulatory certainty makes it difficult for investors to be confident in crypto's near-term trajectory.