Senate Crypto Bill Under Fire: How Banking Lobbyists Are Fighting the CLARITY Act

The Senate crypto bill, which aims to bring much-needed regulatory clarity to the U.S. digital-asset market, has encountered one of Washington’s oldest power centers: the banking lobby.

The CLARITY Act cleared the Senate Banking Committee in May, but the Senate went on recess in August without voting on it. One particular provision has proven particularly contentious. Banks have mounted a fierce lobbying campaign to stop crypto exchanges from being able to make rewards on stablecoin deposits.

What Is the Senate Crypto Bill Trying to Do?

The Senate crypto bill, or the CLARITY ACT, is set to create a federal market structure for digital assets. The text would:

• Determine which assets are securities and which are commodities
• Provide regulatory clarity on the SEC’s and CFTC’s jurisdictions
• Require registrations from market makers
• Set out rules for fundraising, custody, anti-money-laundering, and decentralized finance

The House of Representatives passed the initial version of the Senate crypto bill in July 2025. The Senate Banking Committee advanced the Senate version in a 15–9 party-line vote on May 14, 2026.

For the crypto industry, CLARITY is one of the most important pieces of legislation in history. Crypto firms have long been at odds with a system that requires them to navigate an uncertain regulatory environment, including ambiguous securities laws.