U.S. Representative French Hill, chair of the House Financial Services Committee, stated that the proposed CLARITY Act could resolve regulatory gaps left by the separate GENIUS Act. Hill emphasized that the CLARITY Act passed the House in the summer with bipartisan support, including 78 Democratic votes. The core legislative effort aims to establish equal regulatory treatment for both bank and non-bank issuers of stablecoins.
"We want equal treatment between bank and nonbank issuers of stablecoins," Hill said in a Fox Business interview, adding that a key bipartisan principle is that "stablecoin should not pay yield." He suggested that remaining issues, such as rules for transaction rewards, could be addressed through the CLARITY Act or subsequent regulatory rulemaking by the Treasury.
The legislative process has now hit a significant delay, drawing sharp criticism from major crypto industry players. Executives from Coinbase and BitGo have publicly slammed opposition from banking groups, which they argue is an attempt to rewrite the bill to favor traditional financial institutions at the expense of innovation and consumers.
Coinbase Chief Legal Officer Paul Grewal accused certain banking groups of trying to "take rewards out of retail consumers’ pockets and put them into the pockets of the biggest banks on the planet." He disputed the banking industry's argument that crypto products could cause a damaging "deposit flight."
BitGo CEO Mike Belshe warned that banks opposing the measure may be harming their own competitive position, stating, "Ironically, the companies fighting it are the ones who need it most." Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, cautioned that attempts to turn the legislation into an "anti-competition bill are shameful."
Negotiations are ongoing in Washington, with the White House facilitating discussions between banking groups and crypto industry representatives. Lawmakers involved believe the CLARITY Act will be discussed by the Senate Banking Committee later this month. According to prediction market Polymarket, there is currently a 73% probability of the CLARITY Act being signed into law in 2026.
