Regional bank pushback stalls CLARITY Act in Senate, hits crypto industry

Regional bank opposition has stalled Senate action on the CLARITY Act, a crypto market structure bill, marking the industry’s biggest political setback in the past two years, Punchbowl News reporter Brendan Pedersen said on X. Pedersen said he spoke over the weekend with four regional bank officials who had urged Republican senators to slow the bill’s progress, adding that regional banks gained the upper hand over the crypto industry in the lobbying battle. Punchbowl News said several factors contributed to the collapse of a vote before the August recess, but growing concerns among Republican lawmakers amid pushback from regional banks played the biggest role. Brad Bolton, CEO of Alabama-based Community Spirit Bank, said the momentum shifted as lesser-known regional bank officials like him, rather than executives from major banks, directly explained the bill’s real-world impact to lawmakers.