The CLARITY Act They were supposed to bring clear crypto regulations, but now they are dividing the industry more than ever. Banks, crypto companies, lawmakers, and even some of crypto’s biggest supporters are fighting key parts of the bill, putting its fate in the balance in the weeks before Congress leaves.
The CLARITY Act Creates a New War Between Banks and Crypto
The CLARITY command does not specify whether the crypto needs to be corrected. Instead, the main fight is over who benefits the most when the legislation becomes law. Traditional banks are strongly opposed to parts of the bill that allow stablecoin companies to issue rewards in digital dollars.
Banks argue that this could pull customer deposits away from traditional savings accounts.
JPMorgan CEO Jamie Dimon publicly criticized opinion, he says, “Banks will not agree that way.”
Bankers also argue that crypto companies cannot replace banks when it comes to lending money.
Coinbase CEO Brian Armstrong pushed back, saying the banks were just trying to protect their old business model.
Meanwhile, Goldman Sachs has taken a different position. The CEO of the organization David Solomon supported the fund saying,
“I’m very supportive of moving the Clarity Act forward, so we can set up the market.”
He also added that it would create a “level playing field” for the economy.
The Crypto Industry Is No Longer Strong
The disagreement is no longer confined to Wall Street. Several major crypto organizations, including the Blockchain Association, the Crypto Council for Innovation, and the Digital Chamber, he urges the senators to pay the bill quickly.
“He urged an immediate vote, reminding lawmakers that the nearly 67 million Americans with digital assets are waiting for these protections.”
Grayscale research director Zach Pandl called the bill important for boosting crypto markets.
“This bill is important for the regulation of corporate markets and cryptocurrencies … it can do for the business what crypto ETFs have done, and open the door for the next opportunity.”
However, not everyone in crypto agrees.
Cardano founder Charles Hoskinson has surprised many by advocating stricter ethics rules, saying President Donald Trump should stay out of crypto markets while in office.
“As predicted, the talking points of 2026 are Crypto = Trump = Corruption, so the left is expected to fall in line and vote against all Crypto currencies.”
Politics Has Been The Biggest Obstacle
The latest version of the CLARITY Act now includes language approved by President Trump. The proposal would prevent the president, vice president, members of Congress, and other government officials from launching cryptocurrencies while in office.
Despite the new language, several Senate Democrats argue that the law still needs strong enforcement.
Some lawmakers want attorneys general to share enforcement powers instead of leaving it all to the Justice Department.
Will the Bill Continue Before August?
Senate Majority Leader John Thune still wants it to start arguing in advance of the lawmakers to go to the summer vacation of Aug. 7, where he warned that allowing for shocks would delay market recovery for years.
Meanwhile, Representative William Timmons said the CLARITY Act is necessary to keep the US at the forefront of the global economy.
“We’re on the 1-yard line, we just have to punt.”
Political developments have already affected market expectations. At Polymarket, the odds of the CLARITY Act passing in 2026 have dropped significantly from 46% to around 32.5%, indicating that traders now see a much stronger road ahead.
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