US banks are the ones most in need of crypto regulatory clarity, according to Chris Giancarlo, former chairman of the US Commodity Futures Trading Commission, who argues that they risk falling behind the rest of the world in payment innovation.
During an episode of Scott Melker’s The Wolf Of All Streets Podcast on Sunday, Giancarlo said the crypto industry will continue to build, even if the Senate’s crypto market structure bill doesn’t pass. However, banks will be hesitant to invest in the technology without clear rules.
“The banks, however, can’t afford regulatory uncertainty. Their general counsels are telling their boards, you can’t invest billions of dollars in this… unless you’ve got regulatory certainty. The banks need this more than crypto,” he said.
“I think there’s a recognition that this is the new architecture of finance and America, our financial institutions are the world’s dominant financial institutions. We need to modernize that. We need to adopt this technology.”
US banks will fall behind if they wait too long on crypto
The crypto market structure bill, known as the CLARITY Act, has stalled in the Senate as banks, crypto firms, and lawmakers have yet to agree on crucial provisions such as whether to allow stablecoin yields.
Giancarlo warned that if US banks delay crypto adoption much longer, other countries in Asia and Europe will move ahead, leaving the American banking system behind.
“Digital rails will be built. And then the American banks will say, whoa what happened here? Our analogue identity-based, message-based system is no longer working anywhere outside the US, we need to modernize. They’ll be on the back foot,” he said.
“The banks need this clarity because they need to build this, they need to be in the forefront, not in the rear guard of this innovation,” Giancarlo added.
CLARITY Act failure could prompt workarounds
The crypto market structure bill passed the House of Representatives in July 2025 and has been referred to the Senate Committee on Banking, Housing, and Urban Affairs before a potential full Senate vote, according to Congress.
Related: Crypto industry split over CLARITY Act after Coinbase breaks ranks
If the bill passes the Senate, it will go to US President Donald Trump for signature. If it fails or is not signed, Giancarlo said SEC and CFTC leaders would likely step in to establish rules independently.
“If it doesn’t get done, I do believe that under leaders like Paul Atkins at the SEC and Mike Selig at the CFTC, they will write the kind of rules that will make this work for now. They won’t have the support of legislation that makes it work forever or at least into the next presidential cycle, but it’ll make it work for now,” he said.
“Now, does that give the industry the certainty they want? No. And who needs that certainty more than the banks? Crypto doesn’t need it. They were building even under the whip hand of Gary Gensler.”
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