Crypto advisor urges CLARITY Act deal to blunt big bank gains

Austin Campbell, founder of Zero Knowledge Consulting, called for a compromise on the US CLARITY Act, arguing that continued fights between crypto firms and community banks would leave large banks better positioned.

He contended that community lenders and stablecoin providers share goals in expanding access to payments and savings, and that regulated stablecoins could help smaller banks address technology and compliance hurdles.

In his view, disputes within the industry strengthen lobbying groups for the largest institutions, which would benefit if smaller banks and crypto providers remain at odds.

Campbell’s remarks followed comments from Christopher Williston, president and CEO of the Independent Bankers Association of Texas, who has warned that concessions in the CLARITY Act debate could weaken local lending and economic output. In an X post, Williston wrote that it is “simply impossible to roll over in the fight for liquidity that powers the economies of the places we call home.”

Research from Standard Chartered estimated that broader stablecoin use could reduce U.S. bank deposits by roughly one-third of the stablecoin market’s value, reflecting concerns that deposit flight could tighten credit.

Campbell pushed back on that view, describing community banks and stablecoin yield providers as natural partners. “These are not enemies,” he wrote, calling them “allies” whose collaboration could expand access to modern financial services. He added that “the big banks and the bank lobbies they fund have tricked both sides into fighting each other so that the ultimate winner is Jamie Dimon’s bonus.”

Political voices also entered the discussion. Eric Trump accused big banks of blocking stablecoin yields through the Clarity Act. President Donald Trump urged the Senate to advance a crypto market-structure package, writing, “The U.S. needs to get Market Structure done, ASAP,” and adding, “The Banks are hitting record profits, and we are not going to allow them to undermine our powerful Crypto Agenda.”

Debate around the CLARITY Act has centered on how stablecoin products would be offered, how yields tied to stablecoin holdings would be handled, and what oversight issuers and intermediaries would face.

Banking groups argue that favorable treatment for stablecoins could prompt depositors to shift cash into nonbank products, limiting funds available for household and small-business lending. Crypto firms and some technologists counter that well-regulated stablecoins can speed payments, improve settlement, and give smaller institutions tools to compete.

Campbell wrote that there is “a very straight line” between the services community banks want to deliver, and the infrastructure stablecoins can provide. He maintained that a negotiated path on the CLARITY Act could preserve community banks’ role in local economies while giving crypto companies clearer rules.

Williston and other community bank leaders emphasize the importance of core deposits in funding local loans and maintaining credit availability, and have urged lawmakers to amend or slow the bill to better protect smaller institutions.