The battle over the US CLARITY Act is heating up. At the core lies a fundamental dispute: should stablecoin issuers be allowed to offer yields to holders? Industry advocates argue that regulated yield-bearing products can expand financial access, urging lawmakers to adopt transparent frameworks instead of blanket bans. Meanwhile, traditional banking representatives warn that unsupervised yield or staking mechanisms could pull deposits from established banks and inject new risks into the financial system.
Giancarlo: Banks Have More to Lose
Chris Giancarlo, former CFTC chairman (2017-2019) and a veteran in digital asset policy, has publicly stated that banks face bigger stakes than crypto firms in the legislative fight. “Regulatory uncertainty prevents banks from deploying billions in investment; these institutions need clear rules before making major commitments,” he said on a recent podcast. Giancarlo warned that delays allow foreign banks to gain a critical edge in digital infrastructure, leaving US institutions behind. In his view, crypto companies can keep innovating regardless of Congress, but US banks risk being outpaced without clarity.
Banking representatives continue to call for strict oversight of any yield distribution, insisting such features be backed by verifiable, regulated investment activity. The disagreement has halted meaningful progress.
Legislative Tightrope: April Deadline and Fallback Plans
The CLARITY Act requires full Senate approval and a presidential signature. President Donald Trump has pushed Congress to accelerate proceedings, calling the bill vital for US leadership in digital assets. JPMorgan market analysts estimate the bill could be enacted by mid-2025 if procedural milestones are hit. (Note: article published March 2026 cites this timeline; consistency with source matter.)
If the legislation fails to advance by the April deadline, SEC Chair Paul Atkins and CFTC Chair Mike Selig may pursue independent regulatory routes. Giancarlo noted that agency-made rules would not carry the same legal weight as statutes but could offer temporary relief for the industry. A previously scheduled markup hearing was postponed in January; committee members now consider holding another markup before the end of March to stay on track.
The outcome of these deliberations will shape US crypto regulation and define the roles of banks and digital asset operators. All stakeholders are closely watching each move of the CLARITY Act.