Banks Accused of Sabotaging Crucial Crypto Regulation Bill

Senator Cynthia Lummis has accused banks of deliberately trying to obstruct the progress of the CLARITY Act, a bill aimed at providing clear regulatory guidelines for digital assets. The bill's fate hangs in the balance as it prepares for its second vote in the Senate on September 15.

Lummis claims that banks are using their influence to demand last-minute changes to the bill before they will support it. She argues that these demands go beyond mere technical concerns, but rather are a deliberate attempt to obstruct the bill's progress.

The main sticking points in the negotiations center on stablecoin interest and ethics provisions. Banks worry that allowing crypto platforms to pay rewards on stablecoins could lead to deposits flowing out of traditional banking accounts and into digital wallets. Crypto firms counter that banks want to compete in digital finance without accepting the same regulatory burden as traditional lenders.