Crypto’s future in America may depend on what happens next in Congress.

President Trump is urging Congress to pass the Crypto Clarity Act, a bill designed to define how digital assets are regulated. But banks are resisting changes that could shift control away from them.

And right now, it has turned into a battle between the White House, the crypto industry, and major banks.

This started in July 2025 when Trump signed the GENIUS Act into law. That bill created the first federal rules for stablecoins, which are dollar-pegged cryptocurrencies.

The law required stablecoin issuers to back their tokens with safe assets like U.S. Treasuries. It allowed both banks and non-banks to issue stablecoins under certain conditions.

It was seen as a major win for the crypto industry. But that was only part one.

Then the Clarity Act came into focus.

The House passed the Clarity Act with bipartisan support. The goal was to clearly define whether crypto assets are commodities or securities and give the CFTC stronger authority over crypto spot markets and exchanges

In simple terms, it was meant to reduce the regulatory confusion and constant lawsuits and create a clear market structure.

But progress stalled in the Senate.

Banks began lobbying to change parts of the GENIUS Act, especially around stablecoins paying yield to users. They did not want stablecoins competing with bank deposits by offering interest-like rewards.

Crypto companies pushed back hard and argued that yield is essential for adoption and innovation. Negotiations broke down, and the Senate delayed progress on the Clarity Act.

Then Trump responded publicly.

Trump accused banks of undermining the GENIUS Act and holding the Clarity Act hostage.

He said banks should not try to undercut the Genius Act and that they need to make a good deal with the crypto industry because it is in the best interest of the American people.

He has called on Congress to pass the Bitcoin and crypto market structure bill as soon as possible.

He also emphasized that if the U.S. does not finalize firm rules, it risks losing crypto innovation to China and other countries.

Support for the bill has been growing.

CFTC Chair Mike Selig has said crypto market structure legislation must pass and stressed the need for a future-proof digital asset framework.

Billionaire Kevin O’Leary has said the Clarity Act will pass and could push Bitcoin toward $200,000, arguing that the U.S. needs to finalize market structure quickly.