Trump-Backed Clarity Act Sparks Banking Industry Backlash
The Digital Asset Market Clarity Act is on track to face its biggest legislative test yet, as it nears a procedural vote that could advance the bill through Congress. President Trump has endorsed the legislation and urged lawmakers to move quickly, reportedly engaging with crypto executives at the White House to build momentum.
Major banks and their lobbying apparatus, however, are pushing hard against key provisions they say could drain deposits from traditional banking systems. The Clarity Act aims to draw clear regulatory lines around digital assets, deciding which ones fall under the SEC's jurisdiction and which belong to the CFTC.
The Senate's final draft of the bill is a significant expansion that incorporates 126 amendments requested by Democratic lawmakers. These additions include ethics regulations around government officials' digital asset holdings, which some see as an attempt to address concerns surrounding President Trump's estimated $1.4 billion to $2.3 billion in crypto holdings.
The banking industry's opposition centers on a provision allowing interest-like rewards on stablecoins, with the Independent Community Bankers of America projecting losses exceeding $1 trillion in community bank deposits if implemented.