The CEO of the American Bankers Association, Rob Nichols, said the banking lobby wants the Clarity Act to succeed, but that the bill still needs a few small changes.

Speaking Wednesday on CNBC’s Squawk Box, Nichols said there is “a lot of good” in the Clarity Act, but that the sections dealing with stablecoins and local lending need to be fixed. The comments come as lawmakers try to move the bill before Congress breaks for the August recess, underscoring how the debate has shifted from whether crypto should be regulated to how those rules should handle banks, exchanges and payment products.

JUST IN: American Bankers Association CEO tells CNBC "There's a lot of good in the Clarity Act" "I do think that the crypto and the banking sectors can coexist. I think we can be the crypto capital of the world." "We're working with the Senators" on this bill. pic.twitter.com/3SldlEBEOS — Bitcoin Magazine (@BitcoinMagazine) July 29, 2026

JUST IN: American Bankers Association CEO tells CNBC "There's a lot of good in the Clarity Act" "I do think that the crypto and the banking sectors can coexist. I think we can be the crypto capital of the world." "We're working with the Senators" on this bill. pic.twitter.com/3SldlEBEOS

“The bill is about 600 pages and there’s only two paragraphs where we’re suggesting tiny surgical edits,” Nichols said.

“I do think that the crypto and the banking sectors can coexist. I think we can be the crypto capital of the world and I think we can be the banking capital of the world.”

The House of Representatives passed the bill last year, but it has remained deadlocked after bank chiefs raised objections related to stablecoins and the yield they could potentially pay customers. Those concerns have become central to the industry discussion because they affect where consumers hold balances and how crypto-linked products compare with traditional bank offerings.

Coinbase, the largest crypto exchange in the United States, withdrew support for the bill in January after a dispute with banking executives who argued that earning yield on stablecoins should be prohibited.

U.S. banks have said they could lose customers if crypto exchanges are able to offer more attractive products tied to their deposit base.

This week, Coinbase Chief Policy Officer Faryar Shirzad dismissed those concerns, saying major lenders are already adopting crypto technology.

Large U.S. banks, including JP Morgan and Bank of America, have expressed interest in stablecoin products or have already begun introducing them. These products run on blockchain technology.

A new draft circulated last week would ban officials and their family members from issuing or promoting crypto, a provision that had previously drawn criticism from opposition lawmakers. That change has added another political layer to the talks, as Republicans press Democrats to support the bill and seek enough backing to keep the legislation moving.

Republican lawmakers are pressing Democrats to support the bill. The measure has bipartisan backing, although some lawmakers, including Senator Elizabeth Warren, have criticized the draft, saying it could allow President Donald Trump to profit from crypto and benefit criminals.

Major institutions, including Fidelity and Goldman Sachs, along with crypto lobby groups and politicians, have said the revised bill works in its current form.

This post Banking Lobby CEO Talks Crypto Clarity Act as Senators Race To Pass Bill first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.