Crypto Bill Sparks Brawl Between Wall Street and Crypto Industry
A highly anticipated cryptocurrency bill, known as the Digital Asset Market Clarity (CLARITY) Act, has sparked intense debate between Wall Street banks and the crypto industry. The bill, largely backed by congressional Republicans and President Donald Trump, aims to establish a regulatory framework for cryptocurrencies and digital assets.
The banking industry has expressed concerns that the bill would allow 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. This, they argue, could lead to deposit flight as customers pull billions of dollars out of checking and savings accounts.
Entities linked to the crypto industry have spent at least $14.6 million in 2025 retaining lobbyists to work on the Clarity Act and other pieces of legislation. The bill has undergone significant changes over the past year, with lawmakers negotiating hundreds of pages of revisions and reaching agreement on SEC and CFTC nominations.
Some Republican senators have expressed hesitation in supporting the bill due to concerns from the bank industry. Senator Josh Hawley of Missouri vowed to vote with his constituents who are 'very worried' about the bill's effect on community banks, while Senator John Curtis of Utah noted that he likes crypto but also likes his banks and wants to find a balance.