Bank Resistance Puts 2026 Passage Of Crypto Market Structure Bill In Doubt, Reuters

The crypto market structure CLARITY Act faces significant delays due to banking sector opposition to stablecoin reward provisions, with passage by 2026 now in doubt. Despite White House compromise attempts, banks remain concerned about deposit flight and continue to oppose the legislation, while time constraints from upcoming midterm elections further complicate prospects.

• →Banks oppose CLARITY Act provisions allowing stablecoin issuers to offer yield-bearing products and customer rewards, fearing deposit flight.
• →White House proposed compromise allowing limited stablecoin rewards for P2P payments while prohibiting rewards on idle balances.
• →Crypto companies accepted the compromise but banks continue to resist, seeking stricter limits on reward-eligible activities.
• →Legislative window is rapidly closing with July being the critical deadline before midterm election campaigning begins.
• →Geopolitical developments including the war in Iran are further complicating Congress's ability to focus on crypto regulation.