Banks vs Crypto: Regulators Clash Over Digital Asset Bill

The banking industry is at odds with the crypto industry over a bill that aims to establish a regulatory framework for digital assets. The Digital Asset Market Clarity (CLARITY) Act, largely backed by congressional Republicans and President Donald Trump, has been met with resistance from banks.

Banks have expressed concerns about allowing cryptocurrency firms to offer rewards programs that pay yield to customers who hold stablecoins, a type of cryptocurrency designed to maintain a value of $1. They worry this could lead to billions of dollars being pulled out of checking and savings accounts, threatening their business model.

The crypto industry has lobbied heavily in support of the bill, with entities linked to the industry spending at least $14.6 million in 2025 retaining lobbyists to work on the Clarity Act and other legislation. Coinbase CEO Brian Armstrong called the legislation a 'win' for the future of America as a global leader for finance, innovation, and national security.'

However, some Republican senators have expressed hesitation in supporting the bill due to concerns from the bank industry. Senator Josh Hawley vowed to vote with his constituents who are worried about the bill's effect on community banks.