The final piece of legislation merging crypto with mainstream finance is at risk due to a standoff involving major crypto exchange Coinbase and the US banking industry. White House crypto czar David Sacks will mediate discussions on policy negotiations. The bill, called the Clarity Act, aims to establish regulatory rules for crypto markets, providing legitimacy to the crypto world and allowing banks to further explore crypto. The Senate Agriculture committee narrowly passed a portion of the bill, but more Democrat support is needed for sustainable progress. A delay in the bill threatens to tarnish a campaign promise by President Trump to make the US the “crypto capital of the planet.” Amidst the D.C. turmoil, Coinbase CEO Brian Armstrong faced criticism and pushback from major bank CEOs, including Jamie Dimon of JPMorgan Chase. Dimon accused Armstrong of giving misleading arguments about the issue on TV. The banking industry expressed concerns about Coinbase’s business model resembling bank deposit services without the same oversight. Opinions vary on the impact of stablecoins, with US banks estimated to lose $500 billion in deposits over the next two years. The postponement of the bill also poses a threat to the crypto industry, as a newly elected Congress may not be as friendly towards digital assets. A key risk for the Clarity Act is the dwindling ability of Congress to pass the legislation as the midterm election season approaches. Crypto PAC Fairshake raised $193 million for future elections, with contributions from Coinbase. The industry faces a contentious relationship with the Trump administration, as the president has called for reforms favoring banks while also proposing a cap on credit card interest rates. Amidst the chaos, clarity over chaos is sought by industry players, as the future of the bill remains uncertain.

Read more at Yahoo Finance: Wall Street banks, crypto leaders set to meet in Washington with landmark Clarity Act hanging in the balance