Summary
- Opposition from U.S. regional banks has slowed Senate action on the CLARITY Act, dealing the crypto industry what was described as its biggest political setback in the past two years.
- Regional banks were assessed to have won the lobbying battle after persuading senators that a stablecoin and digital-asset regulatory framework could lead to deposit outflows and weaker profitability.
- The U.S. Senate is scheduled to hold a CLARITY Act vote on Sept. 15, but the bill's fate remains uncertain because of pushback from regional banks.
Forecast Trend Report by Period
Opposition from U.S. regional banks has slowed Senate action on the CLARITY Act, a digital-asset market structure bill, dealing the crypto industry what Punchbowl News described as its biggest political setback in the past two years.
On Aug. 9, Punchbowl News reporter Brendan Pedersen wrote on X that he spoke over the weekend with four regional bank officials who urged Republican senators to slow the bill's progress. In his assessment, regional banks won the lobbying battle against the crypto industry.
Punchbowl News reported that several factors kept the CLARITY Act from reaching a Senate vote before the August recess. A key reason was coordinated opposition from regional banks, which amplified concerns among Republican lawmakers.
According to the report, regional banks pressed senators on the risk that a regulatory framework for stablecoins and digital assets could trigger deposit outflows and weaken profitability.
Brad Bolton, chief executive officer of Community Spirit Bank in Alabama, said the momentum shifted when lesser-known regional bank executives like him, rather than representatives of large banks, directly explained to lawmakers how the bill could affect local financial institutions.
The U.S. Senate is scheduled to vote on the CLARITY Act on Sept. 15. Even so, the bill's prospects remain uncertain as opposition from regional banks persists.
