Banks appear to be actively campaigning against an increasingly vulnerable CLARITY Act now that apparently stalled Senate negotiations over the long-delayed crypto market structure bill and a crowded Congressional agenda have reduced the legislation's chances of passage.
Banks May Now be Seeking to Block CLARITY Act as Senate Hopes Fade
20 April 2026 - 19:56 CEST
By Ana Pereira
Evidence of newly hardened opposition against the CLARITY Act is evident in new "anti-stablecoin" advertisements by American Bankers Association (ABA), according to Alexander Grieve, vice president of government affairs at venture capital firm Paradigm, who said the move suggested banks were now focused on blocking the CLARITY Act in its entirety rather than resolving outstanding policy disputes.
One ad, displayed on Politico as a "message from the ABA," urged senators to "close the stablecoin loophole" and framed the issue as protecting local lending while embracing innovation.
The campaign refers to concerns that stablecoins offering rewards or yield-like incentives could draw funds away from lenders, particularly smaller and regional banks that rely heavily on deposits for funding.
Sandmark has reached out to the ABA and other industry groups for comment but had not received a response at the time of publication.
Stakes for crypto industry
The CLARITY Act is intended to establish a wider regulatory regime for digital assets, including oversight boundaries between the Securities and Exchange Commission and Commodity Futures Trading Commission, while also addressing how certain crypto products interact with consumers and financial markets.
The House passed its version of CLARITY with bipartisan support, but the Senate remains the key bottleneck. Treasury Secretary Scott Bessent earlier this month urged Congress to pass the market structure bill, saying regulatory uncertainty has pushed development overseas.
Recent negotiations had centred on a possible compromise that would allow rewards linked to transactions or payments activity, while restricting yields paid on passive wallet balances that more closely resemble interest-bearing deposits. Those talks have yet to produce a public breakthrough.
Congress calendar tightens
Supporters of the CLARITY Act had been aiming for a Senate Banking Committee markup later this month, but the committee's public April schedule currently lists only a hearing on the nomination of Kevin Warsh to serve as chair of the Federal Reserve, with no action posted for the crypto bill.
For crypto advocates, this spring is crucial if the bill is to become law any time soon. As the 2026 midterm elections approach, congressional attention will likely to shift toward campaigning and must-pass items. If control of either chamber changes hands, as is widely expected, the legislative support behind CLARITY could shift materially, potentially reopening core provisions or delaying passage at least until the next Congress.
