CLARITY Act: US Banks Could Be Biggest Losers in Regulatory Standoff

In a recent episode of "The Wolf of All Streets" podcast, former CFTC Chairman Giancarlo stated bluntly that the crypto industry's growth won't be halted by Washington's hesitation. The real victims, he argues, are traditional financial institutions like Bank of America, which are paralyzed by the lack of a clear regulatory framework, hindering their ability to advance in digital asset-related businesses. He pointed out that regulatory uncertainty is causing U.S. banks to lose competitiveness. Global competitors are already accelerating their deployment in the digital payments sector, while U.S. institutions are held back by compliance challenges. "They can't afford regulatory ambiguity," Giancarlo emphasized. The core of the current legislative deadlock revolves around the yield on stablecoins. The CLARITY Act aims to designate the Commodity Futures Trading Commission (CFTC) as the primary regulator for the spot crypto market, an arrangement with relatively little controversy. The real disagreement lies in whether crypto companies should have the right to pay interest to stablecoin holders. Banks strongly oppose this, fearing it will trigger a massive outflow of deposits, threatening the traditional savings system. This stance led to the breakdown of a compromise that the White House attempted to reach in March 2026. However, it is reported that then-President Trump was more inclined to support the crypto industry, believing that the banks' resistance was essentially suppressing innovation and depriving consumers of the right to earn returns on assets. Giancarlo further criticized that the current regulatory mindset is still stuck in the previous era—trying to frame new technologies with old rules, rather than building a framework that adapts to the pace of innovation. He advocates for a principles-based regulatory model that is more flexible and forward-looking. More importantly, the younger generation is not entering the crypto market out of curiosity, but proactively moving away from the financial system designed for the last century. This structural shift is difficult to reverse, regardless of what bill Congress ultimately passes.

As of March 2026, the total market capitalization of the global crypto market has approached $2.34 trillion. Despite ongoing pressure from geopolitical risks and legislative uncertainty, Bitcoin remains stable in the $68,000 to $70,000 range. Moreover, over a hundred crypto-related ETFs are awaiting listing, and their launch pace is highly dependent on the clarity of the regulatory environment. JPMorgan analysts point out that if the CLARITY Act can be passed by mid-2026, it will be a key catalyst for driving a market rebound in the second half of the year. The Gemini team also predicts that the passage of the bill will inject decisive confidence into the industry.