US Crypto Regulation Bill Faces Last-Minute Opposition Ahead of Crucial Vote

The US crypto regulation bill, CLARITY Act, faces renewed resistance from various groups before its scheduled vote on Tuesday. Banking groups, state attorneys general, and crypto policy advocates have challenged different sections of the revised legislation.

The Senate Republicans released their latest draft of the bill on September 14 after incorporating 126 changes requested by Democrats. The revised measure adds ethics provisions drawn largely from a proposal by Senators Thom Tillis and Ruben Gallego, which were accepted by President Donald Trump. However, banking groups argue that existing language could allow stablecoin rewards resembling deposit interest, which could shift funds from community banks into payment stablecoins.

The American Bankers Association had pressed senators earlier to tighten Section 10404 before cloture. The banking groups argued that intervention would occur only after large outflows had already developed, creating a narrower question inside US crypto regulation. Congress must decide how stablecoins can offer rewards without operating like interest-bearing bank deposits.