CEOs of Citi, Wells Fargo and BofA to Brief Senators on US Crypto Market-Structure Bill
CEOs from Citigroup, Wells Fargo and Bank of America will meet both Republican and Democratic US senators this week to discuss the crypto market-structure bill (commonly called the CLARITY Act). Scheduled meetings aim to provide bank perspectives on GSIB market-structure priorities, bank permissibility, interest payments on crypto products, and illicit finance risks. The meetings come after passage of the GENIUS Act and amid delays to the CLARITY Act caused by a recent government shutdown and congressional disagreements. Key legislative hurdles include committee jurisdiction split between the Senate Banking Committee (securities) and the Agriculture Committee (commodities), outstanding language on ethics and quorum, and demands from some senators for conflict-of-interest provisions related to the President’s family. The scope of the bill — especially whether developers, validators and other noncustodial participants are treated as intermediaries — remains contested. A tentative Senate Banking Committee markup was reported for mid-December, but timing and content are uncertain. Traders should note increased policy risk and potential regulatory reclassification that could affect centralized exchanges, stablecoin yields, DeFi projects and bank custody offerings.
Neutral
This development is policy-driven and represents regulatory risk rather than an immediate market event — so its net effect is neutral in the near term but could sway markets later depending on outcomes. Positive engagement between major bank CEOs and senators signals that influential financial incumbents are shaping the bill, which can bring regulatory clarity if compromises are reached. Clarification that banks can custody crypto or offer interest-bearing products could be bullish for centralized exchanges, custodians and tokenized stablecoin demand. Conversely, expansion of intermediary definitions to include developers/validators or strict conflict-of-interest and compliance provisions could tighten compliance costs and be bearish for certain DeFi projects and token yields. Historically, legislative progress (or credible moves toward clarity) tends to reduce volatility and support risk assets over weeks to months, while ambiguous or restrictive outcomes increase regulatory uncertainty and short-term downside. Traders should monitor committee markups, specific language on stablecoin yields and intermediary definitions, and any shifts in bank custody or product announcements — these signals will determine whether the longer-term impact turns bullish or bearish.