US Crypto Regulation: Banks Oppose CLARITY Act Amid Presidential Pressure

The US government's efforts to regulate digital assets have hit a roadblock as lawmakers debate the CLARITY Act, a bill designed to provide clarity on digital asset regulations.

President Trump has intensified pressure on Congress to move quickly on the legislation, arguing that large banks are 'threatening' the administration's broader digital-asset agenda.

The CLARITY Act, formally titled the Digital Asset Market Clarity Act of 2025, seeks to define how digital assets are classified and which federal regulator has primary authority over them. The bill would give the Commodity Futures Trading Commission a central role in overseeing digital commodities and related intermediaries, while preserving parts of the Securities and Exchange Commission's authority over certain primary-market transactions.

The House has already passed the bill, but it remains pending in the Senate. Supporters argue that the legislation is necessary to provide clarity on digital asset regulations, reduce litigation risk, and encourage more firms to operate in the US market. Critics, however, warn that the bill could move too quickly or fail to fully address investor protection, systemic risk, and enforcement concerns.