Bank Plans on CLARITY Act Send Circle and Coinbase Shares Lower

Shares of Circle (CRCL) and Coinbase (COIN) both dropped more than 3% following reports that JPMorgan Chase and a consortium of major banks are moving to issue their own stablecoins after the advancement of the CLARITY Act. This news highlighted the potential for traditional lenders to compete with crypto-native issuers like Circle and Tether.

The sell-off came after a Wall Street Journal report indicated that U.S. banks are becoming more interested in stablecoins as nonbank issuers expand, with executives concerned the tokens could encroach on traditional banking. JPMorgan Chase has explored a potential stablecoin, though discussions are still preliminary and no product is currently under development.

JUST IN: Bank of America, Wells Fargo, Santander & over a dozen major banks move forward with plans to launch a crypto stablecoin.

— Watcher.Guru (@WatcherGuru) August 26, 2026

Separately, a consortium of more than a dozen banks, including Bank of America, Wells Fargo, and Santander, is advancing plans for a commercial-focused stablecoin. The consortium has discussed a stablecoin covering the U.S. dollar, the euro, and other Group of Seven currencies.

CRCL retail sentiment on Stocktwits slipped from the extremely bullish zone to the bullish zone as chatter remained at high levels over the past day. COIN sentiment stayed in the extremely bullish zone, with chatter also remaining at high levels.

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BankChain Alliance Plans a Bank-Owned Network

The BankChain Alliance announced an industry-owned and industry-governed blockchain network intended to enable banks of all sizes to build modern payment rails. According to the Wall Street Journal, the organizations involved, modeled on the Federal Home Loan Bank system, represent about 3,283 institutions and $21.8 trillion in assets. The platform is expected to emerge in the first half of 2027.

Planned use cases include treasury management, supply-chain financing, cash management, tokenized deposits, stablecoins, smart payment tools, and automated settlement. The Alliance stated it is seeking a technology partner and that the network would be interoperable with other networks and open to ownership by banks nationwide.

Kathy Kraninger, interim chair of the BankChain Alliance and president and CEO of the Florida Bankers Association, said the collaboration aims to help banks of all sizes build their future and continue serving customers safely and efficiently across rural, urban, and regional communities.

Kathy Kraninger speaking at a Bipartisan Policy Center event.

The announcements indicate banks are exploring on-chain payment and settlement services alongside tokenized deposits and stablecoins. The reported plans remain preliminary for JPMorgan, while the BankChain Alliance network is planned for 2027.

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CLARITY Act Uncertainty and Coinbase Push

Coinbase has become one of the most vocal industry supporters of the CLARITY Act, with CEO Brian Armstrong and senior executives repeatedly urging the Senate to advance the crypto market structure bill. The company has also backed industry lobbying efforts, including a June letter signed by more than 200 crypto organizations calling for a Senate floor vote.

WATCH: Coinbase CEO Brian Armstrong says self-custodial wallets are “the ULTIMATE sovereignty.”
Q: You can’t get debanked from crypto right?
“Many people including the president himself and his kids got debanked in the United States.”
“If you have a self-custodial… pic.twitter.com/3ERrK095b1

— Coin Bureau (@coinbureau) August 28, 2026

More recently, Coinbase Vice Chair Ryan VanGrack publicly pushed for passage as lawmakers faced mounting pressure to act, while Coinbase backed advocacy group Stand With Crypto, which endorsed congressional candidates who previously supported the legislation.

For now, the bank news arrived as the Digital Asset Market Clarity Act, or CLARITY Act, had yet to pass the Senate, with the bill’s treatment of stablecoin yield among the remaining issues to be resolved.

Photo by Ramaz Bluashvili on Pexels

Shay Boloor, a market strategist at Futurum Equities, said Circle stock was under pressure amid concern that a dollar stablecoin issued and distributed at scale by major banks could reduce the share of the market flowing through Circle and USDC.

Two developments remain in view. The BankChain Alliance network is anticipated for the first half of 2027, and the Alliance is still seeking a technology partner.

Meanwhile, the Senate’s handling of the CLARITY Act, including its treatment of stablecoin yield, remains unresolved. The progress of the bank initiatives and the legislation will remain central to the discussion around stablecoin competition.

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