Crypto Exec: Community Banks Are Allies in CLARITY Act Debate
Austin Campbell, founder of Zero Knowledge Consulting, urged the crypto sector and U.S. community banks to align on the CLARITY Act, warning that failure to reach common ground would primarily benefit large financial institutions. In a post on X on Friday, he said that if the two sides cannot cooperate, “the winners” will not be community banks, consumers, or the crypto industry, but “the big banks.”
Campbell argued that community banks face technological and regulatory challenges that stablecoins could help address. “There is a very straight line between the value community banks bring,” he said, adding that solutions tied to stablecoins could be part of the answer.
Major banks ‘have pitted both sides against each other’
Describing stablecoin-yield providers and community banks as “allies,” Campbell claimed that large banks and their lobbying efforts have encouraged conflict between the two groups. “The big banks and the bank lobbies they fund have tricked both sides into fighting each other so that the ultimate winner is Jamie Dimon’s bonus,” he said.
Source: Patrick Witt
Campbell’s comments followed remarks from Christopher Williston, president of the Independent Bankers Association of Texas, who cautioned that concessions in the CLARITY Act discussions could undermine local lending and economic activity. “It’s simply impossible to roll over in the fight for liquidity that powers the economies of the places we call home,” Williston said.
Banking trade groups have argued that, if enacted as currently drafted, the CLARITY Act could pull deposits from the traditional banking system via stablecoins. Standard Chartered wrote in a recent research note that rising stablecoin use could reduce U.S. bank deposits “by one-third of stablecoin market cap.”
The issue has also attracted attention from the Trump family. Eric Trump said in an X post on Thursday that major banks are not acting in the interests of Americans. “Big Banks (think JPMorgan Chase, Bank of America, Wells Fargo, etc.) are lobbying overtime to block Americans from getting higher yields on their savings,” he wrote.
Trump calls for swift passage of market-structure legislation
U.S. President Donald Trump criticized banks for delays surrounding the Senate’s crypto market-structure bill amid disagreements over stablecoin yield payments. “The U.S. needs to get Market Structure done, ASAP,” Trump said. “The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda,” he added.
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