Banks Blamed for Derailing Crypto Bill Amid Stablecoin Deposit Concerns

White House crypto adviser Patrick Witt has accused major U.S. banks of opposing the CLARITY Act, citing concerns over stablecoin deposits and ethics provisions involving President Donald Trump.

The CLARITY Act aimed to establish a federal framework for digital-asset markets but ultimately failed to advance in the Senate due to disagreements over stablecoin rewards and ethics provisions.

According to Witt, opposition to the legislation was 'a wildfire that was started by larger banks that ultimately spread to community banks.'