How Crypto’s Lobbying Muscle May Save the Clarity Act

Bitcoin’s monthslong slump has turned into a roughly $1 trillion rout, but the crypto industry’s well-funded lobbying machine remains formidable. That strength has shown up in a showdown over the Clarity Act, legislation supporters hope could stabilize slumping markets.

The bill stalled last month amid a dispute between some crypto figures—notably Brian Armstrong, the C.E.O. of Coinbase—and banks over stablecoin rewards. Crypto companies say such rewards help them compete against traditional lenders; banks say they are unregulated interest payments that could destabilize the banking system.

The pro-crypto Trump administration convened a White House meeting urging the sides to resolve their differences before the midterm elections, when Democrats could regain control of the House. The banks and Armstrong seemed to listen. "I’m confident we can achieve a market structure win-win that advances the president’s crypto agenda while addressing the concerns of the banks," Armstrong wrote last week on social media.

United States, Washington, D.C.

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