Crypto Market Bill Hits New Deadlock as Banks Reject White House Deal

The crypto market bill has hit yet another roadblock. This comes after banks expressed their inability to support the compromise proposed by the White House. This new twist has raised fresh concerns about the viability of the bill passing this year, despite efforts to ensure it passes.

Banks Block White House Push to Break Crypto Market Bill Impasse

According to Reuters, bank executives have rejected the latest compromise that was proposed by the White House to make a deal on the CLARITY Act.

This comes just after President Trump called out banks to make a deal as soon as possible. He added that the banking industry was deliberately holding up the crypto market bill. “We are not going to allow them to undermine our powerful Crypto Agenda,” he said on Tuesday.

Trump’s digital asset committee intervened last month to broker a deal. The White House compromise allows for stablecoin rewards to be made possible under certain circumstances, such as P2P transactions.

Crypto organizations have come around to this deal, but banks claim that they cannot go along with it. Banks claim that they still want to severely restrict the circumstances under which rewards can be made possible. The ABA also said that banks have offered suggestions on how to advance the crypto market bill without putting deposits at risk.

Meanwhile, firms like Coinbase claim that they must be able to offer rewards to gain customers. They also said it would be anticompetitive if they were barred from doing so. To note, Standard Chartered estimated that $500 billion could be drained out of American banks by the end of 2028 if they are allowed to offer stablecoins.

Senate Supports Banks on CLARITY Act Provision

It has been noted that some senators are supporting the position taken by the banks regarding the provisions regarding stablecoins. The U.S Senators were already considering setting new markup dates for this month after the last attempt was stalled. However, it seems like it may be delayed again amid the new setback.

The banks have noted that if the Senate can publicly support their position regarding the crypto market bill, it may be able to get a better deal.

There have been concerns regarding whether the  bill could still be passed into law this year. The bill still has to clear hurdles regarding disagreements between senators regarding ethics and illicit finance provisions.

Moreover, Senate floor time is limited before lawmakers return to Washington in the summer to begin campaigning for the mid-term elections.