BitGo CEO Says Firms Fighting CLARITY Act May Need It Most

• BitGo CEO Mike Belshe criticized companies opposing the CLARITY Act.
• Major financial firms signal growing belief that digital assets will shape the future financial system.
• Lawmakers weigh limits on stablecoin rewards amid bank deposit concerns.

The Digital Asset Market CLARITY Act, one of the most important crypto regulatory proposals in the United States, has entered another period of uncertainty in the Senate. 

At its core, the bill attempts to divide authority between the Commodity Futures Trading Commission and the Securities and Exchange Commission while also introducing a framework for stablecoins and other digital assets.

On Wednesday, BitGo CEO Mike Belshe criticized companies opposing the CLARITY Act, arguing that firms resisting clearer crypto regulation may ultimately need it the most.

Belshe Warns Crypto Firms Against Blocking Progress

Belshe said the CLARITY Act could provide the legal certainty needed for digital asset markets to expand within the US financial system. 

He pointed out that major crypto infrastructure companies such as BitGo, Kraken, and Coinbase are likely to continue building financial products regardless of whether the bill passes.

However, without a clear federal framework, traditional banks may remain cautious about entering the market.

According to Belshe, the longer regulatory uncertainty persists, the greater the advantage for crypto‑native firms that already operate outside the traditional banking model.

Meanwhile, large financial institutions appear increasingly open to digital assets, Belshe noted.

Leaders across major firms such as BlackRock, Fidelity, WisdomTree, Intercontinental Exchange, and the New York Stock Exchange have all indicated that digital assets could play a central role in the future financial system.

Banks and Crypto Clash Over Stablecoin Rewards

The most contentious issue in the debate involves stablecoin reward programs. The banking sector argues that if crypto platforms are allowed to offer yield or incentives for holding dollar‑pegged stablecoins, customers could move deposits away from traditional banks.

Lawmakers are therefore exploring a compromise that would limit how rewards can be distributed. Some proposals focus on allowing transaction‑based incentives while restricting rewards tied purely to the amount of stablecoins held in an account.

This dispute follows the passage of the GENIUS Act, which established the first national framework for stablecoin issuers.

While that law prohibits issuers from paying interest directly, it does not fully address incentives offered by crypto exchanges or other intermediaries. The CLARITY Act aims to fill that regulatory gap.

Related: Ripple CEO Urges Senate to Prioritize Passing the Crypto Market Structure Bill