Banks will continue to avoid holding most crypto on their balance sheets as the Clarity Act falters in the US Senate, according to industry experts.

The Clarity Act (see Provision Tracker) would create a statutory regulatory framework for digital assets, delineating which cryptocurrencies are securities or commodities and splitting responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

By recognising banks’ right to hold crypto assets and clarifying jurisdictional responsibilities, the bill would give lenders the legal certainty they say they need to build crypto businesses.