 ▲ Banks, Bitcoin (BTC), virtual assets, cryptocurrency regulation / ChatGPT-generated image |
A White House cryptocurrency adviser and Coinbase executives have strongly criticized the banking sector for attempting to delay legislation on a U.S. cryptocurrency market structure bill, urging its swift passage.
According to a report by CoinGape on March 11 (local time), White House crypto adviser Patrick Witt and Coinbase Chief Legal Officer Paul Grewal, along with other industry officials, pointed out that banks are slowing the bill’s progress by citing unfounded claims of deposit outflow risks. In a post on X (formerly Twitter), Witt emphasized that the U.S. crypto market structure bill (CLARITY) must remain legislation that promotes innovation. He strongly condemned what he described as a disgraceful attempt by banks to obstruct the legislative process in order to limit competition.
Previously, U.S. President Donald Trump sharply criticized the banking sector, warning that if cryptocurrency-related legislation fails to pass, leadership in the industry could shift to rival nations, including China. The Trump administration has stepped in to mediate the conflict between the banking sector and the crypto industry, with Witt leading negotiations. Senator Angela Alsobrooks, a Democrat serving on the Senate Banking Committee, stated that banks may need to make certain compromises to facilitate the bill’s progress.
Coinbase executives also criticized banking groups for allegedly disregarding President Trump’s stance and attempting to make the bipartisan stablecoin regulation bill, GENIUS, a precondition for passing the broader U.S. crypto market structure legislation. Grewal argued that banks are trying to take rewards out of the pockets of individual consumers and redirect them to benefit large financial institutions. He further asserted that claims raised by JPMorgan CEO Jamie Dimon regarding deposit flight risks are entirely fictional and unsupported by evidence.
The banking sector is reportedly considering litigation in response to efforts to grant bank charters to cryptocurrency companies. The Bank Policy Institute (BPI), which represents JPMorgan, Goldman Sachs, and Citigroup, is said to be discussing a potential lawsuit against the Office of the Comptroller of the Currency (OCC) for supporting crypto firms in conducting banking activities. Due to this broad pressure campaign by banks, market expectations for the bill’s early passage have become somewhat divided.
According to data from prediction market platform Kalshi, the probability that the U.S. crypto market structure bill will be enacted before June has fallen to 41%. However, the likelihood of passage before 2027 stands at 68%, indicating that long-term prospects for the legislation remain highly regarded. Kristin Smith, President of Solana Strategy, predicted that the bill would pass by July, maintaining market optimism. The Senate Banking Committee plans to begin a full review of the legislation as early as late March.
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