Coinbase CLO and White House Crypto Adviser Patrick Witt Slam Banks Over Clarity Act Delays

With the CLARITY Act facing ongoing delays in the Senate, the White House is working to mediate talks between banks and crypto industry representatives. White House crypto adviser Patrick Witt and Coinbase CLO Paul Grewal and other executives have criticized banks for what they consider unnecessary delays, citing concerns such as deposit flight risk.

White House Crypto Advisor Criticizes Efforts to Make CLARITY Act Anti-Competitive

White House crypto adviser Patrick Witt stated in an X post that the CLARITY Act “must remain a pro-innovation piece of legislation.” He criticized efforts to alter the bill for anti-competitive purposes, calling such actions “shameful.”

Earlier, President Donald Trump criticized banks and warned that failure to pass the crypto bill could drive the industry to competing countries, including China.

The Trump administration is meeting with banking and crypto representatives to address disputes, with Patrick Witt playing a key role in mediating discussions on the CLARITY Act. Senators and the White House crypto adviser are seeking a compromise on issues such as deposit flight risk related to stablecoin yields.

Democratic Senator Angela Alsobrooks, a member of the Banking Committee, stated that banks may need to make compromises on the CLARITY Act amid delays. The Senate Banking Committee is considering a markup of the crypto bill by the end of March.

Coinbase CLO and Other Executives Slam Banks Over Delays

Coinbase executives, including Brian Armstrong, Paul Grewal, and Faryar Shirzad, criticized banking groups for disregarding President Trump’s position and seeking changes to the bipartisan GENIUS Act as a condition for passing the crypto market structure bill.

Coinbase CLO Paul Grewal alleged that banks are attempting to shift rewards from retail consumers to large banks. He also stated that concerns raised by banking representatives, including JPMorgan Chase CEO Jamie Dimon, regarding deposit flight risk lack supporting evidence.

What is being attempted is to take rewards out of retail consumers’ pockets and put it into the pockets of the biggest banks on the planet. All to prevent a deposit flight “risk” that lacks any evidence whatsoever. Is that what people elected their Senators to do? https://t.co/nX7tuIj8J9

— Paul Grewal (@iampaulgrewal) March 11, 2026

Banks are considering legal action regarding banking charters for crypto firms. The Bank Policy Institute, representing major institutions such as JPMorgan Chase, Goldman Sachs, and Citigroup, is evaluating a lawsuit against the US OCC over its efforts to grant banking charters to crypto firms.

The likelihood of the CLARITY Act becoming law before June has dropped to 41% on the Kalshi prediction market. Solana Policy Institute president Kristin Smith predicted the crypto bill would pass by July. Kalshi data indicates a 68% chance of passage before 2027.