Wall Street Banks Duking It Out With Crypto Bros Over Key Bill

The banking industry has clashed with the crypto industry over a cryptocurrency bill largely backed by congressional Republicans and President Donald Trump.

The banking industry pushed back aggressively against the Digital Asset Market Clarity (CLARITY) Act, which would establish a regulatory framework for cryptocurrency and digital assets, that is heavily lobbied and supported by the crypto industry. Some Republican senators argued they will oppose the bill without adding protections for state and local banks, which argued they could be wiped off the map if lawmakers did not add these protections

Banks expressed concerns about whether crypto firms should be allowed to offer rewards programs that pay yield to customers who hold stablecoins, a form of cryptocurrency designed to maintain a value of $1. The industry is worried that crypto rewards programs could lead customers to pull billions of dollars out of checking and savings accounts, which would threaten their business model. (RELATED: Congress Must Stand With Law Enforcement And Fix Dangerous Gap In Crypto Bill — Before It's Too Late)

Entities linked to the crypto industry spent at least $14.6 million in 2025 retaining lobbyists to work on the Clarity Act and other pieces of legislation, according to the Washington Examiner. Members of Congress who were among the initial co-sponsors of the bill had alums of their offices lobbying lawmakers on crypto-related issues when they signed onto the bill. These included former staffers for House Majority Whip Tom Emmer and Republican Pennsylvania Rep. Glenn Thompson.