Mask-Off

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Crypto Regulation Fight Enters “Mask-Off Phase,” Boring Says

Key Highlights

  • Banks are openly pushing back against crypto rules, which Perianne Boring calls a “mask off” phase.
  • The CLARITY Act passed a key Senate committee vote (15–9), moving closer to a full Senate decision.
  • Banks are worried stablecoin rewards could pull money out of bank accounts and reduce lending for families and businesses.

According to Perianne Boring, head of The Digital Chamber, the tension between traditional banks and the cryptocurrency world has reached a turning point. Banks are now openly expressing their resistance to laws that would regulate digital assets.

In an interview on Fox Business’ Mornings with Maria, Kristin Smith of the Blockchain Association explained that banks are now openly voicing their opposition to certain aspects of the new crypto regulations. She described this as a shift from behind-the-scenes resistance to a more direct approach, calling it a ‘mask off’ moment for the industry.

The financial industry is now openly opposing cryptocurrency. This isn’t due to genuine concerns about risk, but rather a reluctance to embrace new technologies. Despite their opposition, innovation in this space is inevitable.

— Perianne Boring (@PerianneDC) May 19, 2026

Banks now speak more openly against crypto

During the discussion, Boring tackled a frequent worry among banks: that attractive rewards or interest rates on stablecoins could lead customers to withdraw funds from traditional bank accounts. Boring argued that this concern is overblown.

She pointed out that established, regulated cryptocurrency companies in the U.S. already provide services that earn users returns, and this isn’t causing people to abandon traditional banks. She also noted that claims of significant money leaving banks aren’t supported by current market data.

As an analyst, I’ve been following the conversation around digital assets, and it’s clear to me that innovation in this space is unstoppable. Even with resistance from certain groups, the technology is going to keep developing and integrate itself into the broader financial system. Honestly, it feels like the train has already left the station – attempts to block it now would be futile.

As a researcher, I’ve observed that this group represents one of the last major holdouts in adopting this technology, but I believe change is inevitable. Innovation always finds a way, and once a technology is released, it’s impossible to fully contain or reverse its spread. It’s simply out there now, and adoption will continue to grow.

Her main point was that the banking system will eventually have to adjust to this change.

CLARITY Act moves forward in the Senate

The CLARITY Act advanced last week after the Senate Banking Committee voted to approve it, with 15 votes in favor and 9 opposed. The bill will now be debated by the entire Senate.

This legislation aims to establish a clear regulatory framework for digital assets, outlining how banks and cryptocurrency firms should operate together. The vote saw unanimous support from Republican committee members, as well as Senators Ruben Gallego and Angela Alsobrooks.

Banking groups still worried about deposits

Leading banking groups, including the American Bankers Association and the Bank Policy Institute, have expressed support for clear regulations regarding cryptocurrency. However, they’ve raised concerns specifically about the rewards offered by stablecoins.

Banks have praised the bill as progress, but are asking for stronger rules on rewards programs. They argue that clear limits are needed to prevent customers from moving their money out of the banking system. Despite their concerns, they acknowledged the bill is an improvement over previous versions.

As a crypto investor, I’m watching this bill closely, and Senator Alsobrooks’ stance tells me things are still very much up in the air. She’s on board with moving it forward, but wants to see some changes before she’ll fully support it. It’s good to know lawmakers are still actively working through the details – this isn’t a done deal yet, and there’s still room for things to shift in a way that could impact crypto.

However, Boring stated the overall trend is obvious: digital assets are increasingly becoming integrated into mainstream finance. She thinks banks aren’t necessarily trying to block this technology, but rather are taking time to adapt to it.

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2026-05-19 20:21