CLARITY Act Senate Push Hits Roadblock as US Regional Banks Win Crypto Lobbying Fight

Opposition from US regional banks has slowed Senate consideration of the CLARITY Act, a digital-asset market structure bill, in what was described as the crypto industry's biggest political setback in the past two years.

On August 9, Punchbowl News reporter Brendan Pedersen wrote on X that he had spoken over the weekend with four regional bank officials who asked Republican senators to slow the bill's progress. He called it a victory for regional banks in their lobbying fight with the crypto industry.

Punchbowl News reported that several factors kept the CLARITY Act from reaching the Senate floor before the August recess. One of the main reasons was coordinated opposition from regional banks, which heightened concerns among Republican lawmakers.

According to the report, regional banks urged senators to focus on the risk that a regulatory framework for stablecoins and digital assets could lead to deposit outflows and weaker profitability.

Brad Bolton, chief executive officer of Community Spirit Bank in Alabama, said the mood shifted when lesser-known regional bankers like him, rather than executives from large banks, directly explained to lawmakers the real impact the bill could have on local financial institutions.

The US Senate is scheduled to vote on the CLARITY Act on September 15. Even so, the bill's path remains uncertain as opposition from regional banks continues.