The CLARITY Act remains stuck in Congress, and Christopher Giancarlo says traditional banks may be feeling the pressure more than crypto firms. The bill is meant to clarify rules for crypto markets, yet major US banks are still reluctant to approve multi-billion-dollar spending on digital payment infrastructure because their legal teams see the regulatory boundaries as unclear.
According to Giancarlo, the problem is not a lack of interest in new financial rails. It is legal exposure. With liability standards still undefined and supervisory agencies not offering firm positions, banks are holding back large budgets for next-generation payment systems. Crypto companies have operated in gray areas for years; banks are far less willing to do that, and the gap is starting to matter as digital finance develops.
Stablecoin yield clause becomes the main fault line
Banking lobby groups have become some of the strongest opponents of the CLARITY Act. The report says JPMorgan and Wells Fargo are pressing lawmakers to remove provisions that would allow stablecoins to pay returns to users.
The banking industry’s concern is straightforward. If yield-bearing stablecoins become common, consumers could move funds out of bank deposits and into digital tokens that offer higher returns. Analysts cited in the report say that if those alternatives gain broad traction, banks could see meaningful pressure on their deposit bases, which are central to lending. Coinbase and other crypto firms argue that the opposition is less about protecting consumers and more about limiting competition. In their view, blocking stablecoin yields creates an artificial barrier for users who want income from their holdings.
Political split adds to the deadlock
The dispute has also taken on a political dimension. Former President Donald Trump has publicly sided with the crypto sector on stablecoin yields and accused banks of blocking progress. Even so, the fight between banking interests and crypto priorities remains unresolved on Capitol Hill.
Giancarlo warned that while Washington delays, Europe and Asia are moving ahead with regulatory frameworks such as MiCA to support digital payments and crypto platforms. He said the US risks falling behind in the global race for digital payments if the impasse continues. On the bill’s chances, he put the odds at 60-40 in favor of passage, while acknowledging that any compromise may still leave both sides dissatisfied.
He summarized the tension in a single line: “It’s an irony: the industry that most urgently needs this law is also the one doing most to block it.” In this debate, continued resistance to stablecoin yields remains the clearest obstacle to movement in Congress.