Banks Blocking Crypto Bill! Danger! Ron Hammond INTERVIEW
The cryptocurrency industry's push for regulatory clarity has hit a significant roadblock as the ongoing government shutdown threatens to derail progress on landmark legislation. Ron Hammond, a Washington insider and frequent commentator on crypto policy, recently shed light on the precarious state of the Clarity Act and the complex political dynamics shaping the future of digital asset regulation in America.
The Clarity Act, which passed the House with strong bipartisan support, now finds itself languishing in the Senate after months of anticipated progress. Originally expected to see committee markups in September or October, the legislation has been caught in the crossfire of broader budget disputes that have paralyzed much of Washington's legislative machinery. Hammond suggests that if the shutdown extends through Thanksgiving, markup sessions could be pushed into December, significantly compressing the timeline for what many consider essential regulatory framework for the burgeoning crypto sector.
Behind closed doors, the legislative negotiations have taken an unexpected turn, with a group of twelve Senate Democrats proposing amendments that have sparked considerable controversy within the crypto community. These proposed concessions touch on multiple sensitive areas, including provisions that would ban interest-bearing stablecoins for third-party platforms like Coinbase and Robinhood, impose anti-money laundering requirements on decentralized finance protocols, and address perceived conflicts of interest related to the Trump family's crypto ventures. The leak of these private negotiations has created tension among lawmakers while simultaneously providing the crypto community with crucial transparency about potential changes to the legislation.
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The banking industry's involvement has emerged as a particularly contentious element of the legislative process. Despite previously endorsing the Genius Act and agreeing to specific terms regarding crypto regulation, traditional banking lobbies are now attempting to reopen negotiations to protect their interests in areas like stablecoin yields. This reversal has drawn criticism from industry observers who view it as bad-faith negotiating, especially as major banks like Citigroup and JPMorgan Chase simultaneously announce partnerships with crypto platforms in the marketplace. The disconnect between banks' public policy positions and their private business strategies has created an awkward contradiction that hasn't gone unnoticed in Washington.
Key Democratic senators have become focal points for the crypto industry's educational outreach efforts, with figures like Ruben Gallego, Mark Warner, and Cory Booker identified as potentially persuadable voices who could help secure the sixty votes needed for Senate passage. The industry received encouraging signals when several Democratic senators mentioned constituent outreach about crypto during recent meetings with crypto executives, suggesting that grassroots advocacy is penetrating Capitol Hill offices. However, the shadow of Senator Elizabeth Warren looms large over these efforts, as she continues to position herself as crypto's most prominent skeptic in Congress, though her influence has diminished somewhat in the minority.
Looking beyond the immediate legislative battles, Hammond remains cautiously optimistic about passage of market structure legislation, projecting a potential timeline extending into spring 2026 if current delays persist. The crypto community is also preparing for the next wave of policy discussions, with cryptocurrency taxation emerging as the likely focus once regulatory clarity is established. Meanwhile, speculation about the next Federal Reserve chair adds another layer of uncertainty, with several candidates on the shortlist holding varying degrees of crypto-friendliness. As Washington remains gridlocked, the crypto industry finds itself in a familiar position: waiting for political dysfunction to resolve itself while the rest of the world continues to innovate and adapt to digital asset technology.
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