The CLARITY Act was supposed to bring clear crypto rules, but it is now dividing the industry more than ever. Banks, crypto companies, lawmakers, and even some of crypto’s biggest supporters are fighting over key parts of the bill, putting its future in doubt just weeks before Congress leaves for recess.
CLARITY Act Creates a New Fight Between Banks and Crypto
The CLARITY Act is no longer about whether crypto needs regulation. Instead, the biggest fight is over who benefits the most once the rules become law. Traditional banks are strongly opposing parts of the bill that allow stablecoin companies to offer rewards on digital dollars.
Banks argue this could pull customer deposits away from traditional savings accounts.
JPMorgan CEO Jamie Dimon openly criticized the proposal, saying, “The banks will not accept it that way.”
Supporters of the banking industry also argue crypto firms cannot replace banks when it comes to lending money.
Coinbase CEO Brian Armstrong pushed back, saying banks are simply trying to protect their old business model.
Meanwhile, Goldman Sachs has taken a different position. CEO David Solomon backed the bill by saying,
“I’m very supportive of moving the Clarity Act forward, so we can get some market structure in place.”
Further added that it could create a “level playing field” for financial innovation.
Crypto Industry Is No Longer Fully United
The disagreement is no longer limited to Wall Street. Several major crypto organizations, including the Blockchain Association, Crypto Council for Innovation, and Digital Chamber, are urging senators to pass the bill quickly.
“They urged immediate votes, reminding lawmakers that about 67 million Americans who own digital assets are waiting on these protections.”
Grayscale’s research head Zach Pandl called the bill essential for improving crypto markets.
“The bill is vital for improving liquidity and crypto markets… it can do for the industry what crypto ETFs did, unlocking the next wave of adoption.”
However, not everyone in crypto agrees.
Cardano founder Charles Hoskinson surprised many by supporting tougher ethics rules, saying President Donald Trump should stay out of crypto markets while in office.
“As predicted, the 2026 talking points are Crypto = Trump = Corruption, and thus the left is expected to fall in line and vote against all Crypto bills.”
Politics Becomes the Biggest Obstacle
The latest version of the CLARITY Act now includes ethics language approved by President Trump. The proposal would stop the president, vice president, members of Congress, and other senior federal officials from launching cryptocurrencies while serving in office.
Even with the new language, several Senate Democrats argue the bill still needs stronger enforcement.
Some lawmakers want state attorneys general to share enforcement powers instead of leaving everything to the Department of Justice.
Can the Bill Still Pass Before August?
Senate Majority Leader John Thune still wants to begin floor debate before lawmakers leave for the Aug. 7 summer recess, while he warned that letting momentum stall will delay market clarity by years.
Meanwhile, Representative William Timmons said the CLARITY Act is important for keeping the U.S. at the center of the global economy.
“We’re on the 1-yard line, we just gotta score the touchdown.”
The growing political tension has already affected market expectations. On Polymarket, the odds of the CLARITY Act passing in 2026 have dropped sharply from 46% to around 32.5%, showing that traders now see a much tougher path ahead.
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