Key facts
- The crypto industry and banking sector are lobbying senators in their home states regarding the Clarity Act.
- A procedural vote on the Clarity Act is scheduled for September 15.
- The legislation aims to establish federal rules for digital assets, dividing oversight between the SEC and CFTC.
- Community banks oppose provisions related to stablecoin rewards, fearing deposit flight and reduced lending.
- Crypto advocates argue for clearer federal rules and the availability of stablecoin rewards.
The fight over the Clarity Act, legislation aimed at providing regulatory clarity for digital assets, has intensified as the crypto industry and banking sector engage in a final lobbying push in senators' home states. A procedural vote is set for September 15. The crypto industry argues the Clarity Act is crucial for legal certainty and maintaining U.S. competitiveness, having spent at least $190 million on advocacy. Groups like Stand With Crypto and the Blockchain Association are mobilizing supporters and launching websites to pressure lawmakers.
However, the bill faces opposition from Democrats and some Republicans who cite insufficient safeguards against money laundering and ethical concerns, as well as potential destabilization of the banking system. The Independent Community Bankers of America is actively lobbying against specific provisions, particularly those related to stablecoin rewards, fearing they could draw deposits away from traditional banks and harm lending. Senators like James Lankford and Mike Rounds have voiced concerns that the bill could allow digital tokens to compete with bank deposits. Despite these challenges, Senator Cynthia Lummis has criticized Democrats over the bill but remains optimistic about its passage. President Donald Trump has also courted crypto support, pledging policies friendly to the market.