A pivotal bill aimed at establishing a comprehensive regulatory framework for digital assets now faces serious delays, threatening the prospects of clearer rules that many in the sector have long sought. This market-structure measure, often referred to as the CLARITY Act, could provide much-needed legal certainty for cryptocurrency exchanges and issuers, potentially boosting operations for leading firms like Coinbase (NASDAQ:COIN) by enabling more predictable compliance and business expansion.
Progress has stalled due to two overlapping political hurdles.
First, President Donald Trump has issued a firm condition on legislative priorities, declaring he will not approve any new measures until Congress advances the SAVE America Act—a controversial voter-identification initiative.
This ultimatum effectively creates a veto threat hanging over the crypto bill, as it cannot reach his desk without clearing this sequencing demand. The stance has injected fresh uncertainty into an already fragile negotiation process in the Senate.
Compounding the issue is a clash between the cryptocurrency industry and traditional banks over stablecoin incentive (yield) programs.
At the core of the dispute lies whether issuers and platforms should be allowed to offer yield-bearing rewards or interest-like payments on stablecoins—digital tokens pegged to the US dollar.
Companies such as Coinbase have built popular features around these incentives, with programs reportedly delivering returns around 3.5 percent to attract and retain users.
Banks argue that such offerings could trigger massive deposit outflows, potentially draining hundreds of billions—or even trillions—from traditional accounts and undermining their ability to fund loans and support economic growth.
The White House attempted to broker a middle ground last month, floating a compromise that would restrict rewards to specific activities like payments or liquidity provision while barring passive yields on idle balances.
Crypto representatives reportedly accepted the proposal, but major lenders rejected it outright, insisting on stricter limits to protect financial stability.
The American Bankers Association has warned of genuine risks to the broader economy if the issue is mishandled.
Trump has openly sided with the crypto camp, meeting privately with Coinbase CEO Brian Armstrong before publicly blasting banks on social media.
He described the situation as unacceptable interference with his administration’s digital asset goals and emphasized that everyday Americans deserve opportunities to earn returns on their holdings.
“Americans should earn money on their money,” he stated, urging banks to reach an agreement in the public interest.
The president referenced the earlier GENIUS Act—a stablecoin-specific law passed last year—as now being undermined by these banking objections.
Industry observers note that prolonged uncertainty could favor established financial institutions while frustrating crypto executives who view regulatory clarity as essential for innovation and US competitiveness.
Analysts estimate stablecoins could shift up to $500 billion in deposits by 2028 if yields remain unrestricted, heightening the stakes.
With limited Senate floor time and midterm elections looming, the bill’s chances of enactment this year appear increasingly slim.
For Coinbase and similar platforms, the legislation represents more than procedural detail—it could legitimize reward programs and shield against regulatory gray areas that have hampered growth.
Yet as talks drag on, the pressures of presidential sequencing demands and entrenched banking opposition have placed the entire effort in jeopardy, leaving the future of US crypto policy hanging in the balance (for now at least).