While the CLARITY Act is repeatedly delayed in the Senate, the White House is attempting to talk to resolve the standoff between banks and the crypto industry representatives. The adviser of the White House with officials of Coinbase, including Paul Grewal, slams banks over unnecessary delays like deposit flight risks.
The White House crypto adviser Patrick Witt posted on X that the CLARITY Act must stay a pro-innovation piece of legislation. He slammed the trials to hijack the legislative process and change it into an anti-competition bill, referring to it as shameful.
Before this, President Donald Trump criticised 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 officials to solve the issues, with Patrick Witt being the mediator regarding the CLARITY Act.
The Compromise
Senators and White House crypto advisers are seeking a compromise on concerns like deposit flight risk from stablecoin yields. Angela Alsobrooks, a member of the Banking Committee, mentioned banks may have to make some compromise on the CLARITY Act.
The officials of Coinbase, comprising Brian Armstrong, Paul Grewal, and Faryar Shirzad, reproached banking groups for avoiding President Trump and changed the bipartisan GENIUS Act as a condition for the passage of the crypto market structure bill.
The CLO of Coinbase, Paul Grewal, accused banks of trying to take rewards out of retail consumers’ pockets and keep them in the big pockets of banks. The officials of banking, like JPMorgan Chase CEO Jamie Dimon, have concerns regarding deposit flight “risk” and short evidence.
Banks are also looking for lawsuits associated with banking charters for crypto companies. The Bank Policy Institute, which shows Wall Street giants comprising JPMorgan Chase, Goldman Sachs, and Citigroup, is pondering a lawsuit against the US OCC over its push to provide banking charters to crypto companies.
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