US EditionCrypto bill hits new impasse, raising doubts over its future
Banks oppose stablecoin yield rules fearing deposit loss and financial instability, while crypto firms back them; $500 billion in deposits could be at risk by 2028, analysts estimate.
- On March 5, talks on landmark crypto legislation hit an impasse after U.S. banks said they could not back a White House compromise, casting doubt the bill will pass this year.
- Banks oppose allowing stablecoin rewards, arguing they risk deposit flight, while lawmakers remain divided over anti‑money‑laundering rules and limited Senate floor time complicates resolution.
- Over $119 million in industry spending backed pro‑crypto candidates in 2024 as Coinbase, Ripple, and the Blockchain Association argue banning rewards would be anticompetitive, while the American Bankers Association warns 'The risks to economic growth and financial stability are real if policymakers don't get this right'.
- To pass, the bill needs support from at least seven Democrats, and the Senate stalemate reduces odds it clears before the summer campaign season, prolonging uncertainty for crypto firms.
- Against geopolitical and electoral headwinds, passage looks harder this year as the war in Iran and Democratic gains could shrink chances, while some Democrats want to ban elected officials profiting from crypto.
23 Articles
23 Articles
Channel News Asia
Crypto bill hits new impasse, raising doubts over its future
March 5 : Talks on landmark crypto legislation have hit a new impasse after banks said they could not back a compromise pushed by the White House, a development that cast doubt on whether the bill will pass this year and sparked criticism from President Donald Trump who accused lenders of trying to undermine it.
Bank Resistance Puts 2026 Passage Of Crypto Market Structure Bill In Doubt, Reuters
In a report published Thursday, Reuters said the long-anticipated crypto market structure legislation, known as the CLARITY Act, may be at risk of not being signed into law in 2026. The uncertainty comes as opposition from the banking sector intensifies, particularly over key provisions tied to stablecoin regulation. Deadlock In Crypto Legislation Per the report, the legislation has run into a fresh stalemate after banks declined to support a co…
The CLARITY Act Impasse: The Federal Tug-of-War Over Stablecoins:
The $6.6 Trillion Threat: (HedgeCo.Net) The American cryptocurrency industry stands at a historic crossroads. Following the successful passage of the GENIUS Act in 2025—which established the first federal framework for stablecoin issuers—the subsequent Digital Asset Market Clarity Act (CLARITY Act) has hit a severe roadblock. The dispute has evolved beyond simple regulatory jurisdiction into a multi-trillion-dollar battle over the future of the …
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