White House Crypto Adviser & Coinbase Exec Slam Banks Over Absurd Delays

As the CLARITY Act faces repeated delays in the Senate, the White House is trying to mediate talks to resolve the standoff between banks and the crypto industry representatives. White House crypto adviser and Coinbase executives, including Paul Grewal, slam banks over unnecessary delays such as deposit flight risks.

Turning CLARITY Act into Anti-Competition Bill Is “Shameful”: Patrick Witt

White House crypto adviser Patrick Witt stated in an X post that the CLARITY Act “must remain a pro-innovation piece of legislation.” He criticized attempts to hijack the legislative process and turn it into an anti-competition bill, calling it “shameful.”

Earlier, President Donald Trump slammed banks and warned that failing to pass the crypto bill could push the industry to competing countries, including China.

The Trump administration is meeting with banking and crypto representatives to resolve disputes, with Patrick Witt central to mediating talks regarding the CLARITY Act. Senators and White House crypto adviser are pushing for a compromise on concerns such as deposit flight risk from stablecoin yields.

Democratic Senator Angela Alsobrooks, who is a member of the Banking Committee, said banks may have to make some compromises on the CLARITY Act. This comes as the Senate Banking Committee eyes a markup for the crypto bill by March-end.

Coinbase Executives Rebuke Banks Over Delays

Coinbase executives including Brian Armstrong, Paul Grewal, and Faryar Shirzad rebuke banking groups for ignoring President Trump and change the bipartisan GENIUS Act as a condition for passage of the crypto market structure bill.

Coinbase CLO Paul Grewal claimed banks are attempting to take rewards out of retail consumers’ pockets and put them into big banks’ pockets. Banking representatives such as JPMorgan Chase CEO Jamie Dimon’s concerns over deposit flight “risk” lacks evidence.

Banks are even considering lawsuits regarding banking charters for crypto firms. The Bank Policy Institute, which represents Wall Street giants including JPMorgan Chase, Goldman Sachs, and Citigroup, is mulling a lawsuit against the US OCC over its push to offer banking charters to crypto firms.

CLARITY Act becoming law before June dropped to 41% on Kalshi prediction market. Amid relays, Solana Policy Institute President Kristin Smith predicted that the CLARITY Act would pass by July. Kalshi data shows 68% of passing before 2027.