Nikolas Sargeant
US banks require cryptocurrency regulatory clarity more urgently than the digital asset industry itself, according to former Commodity Futures Trading Commission Chairman Chris Giancarlo, who warned American financial institutions risk falling behind global competitors in payment innovation without definitive rules.
During an appearance on The Wolf Of All Streets Podcast, Giancarlo stated the cryptocurrency industry will continue building regardless of whether the Senate's crypto market structure bill passes. However, banks will remain hesitant to invest in blockchain technology without regulatory certainty.
"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," Giancarlo explained, characterizing blockchain infrastructure as "the new architecture of finance."
The crypto market structure bill, known as the CLARITY Act, has stalled in the Senate as banks, cryptocurrency firms, and lawmakers have yet to reach agreement on crucial provisions including whether to permit stablecoin yields. The legislation passed the House of Representatives in July 2025 and awaits Senate committee consideration before a potential floor vote.
Giancarlo warned that prolonged delays in cryptocurrency adoption will allow Asian and European institutions to advance while American banking systems lag 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 stated.
If the CLARITY Act fails to pass, Giancarlo expects SEC Chair Paul Atkins and CFTC Chair Mike Selig will write rules independently to establish regulatory frameworks. However, those rules would lack the permanence of congressional legislation. "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."
