Overview
- A procedural vote on the Clarity Act is set for September 15 in the Senate.
- Stand With Crypto reports that supporters contacted Congress nearly 50,000 times in August.
- Community banks are lobbying senators about provisions they believe could divert deposits and negatively impact lending.
As the Senate approaches a crucial vote on the Clarity Act, advocates for cryptocurrency and community bankers are ramping up their lobbying efforts in the home states of senators.
A procedural vote on the Clarity Act is scheduled for September 15. This legislation aims to create federal guidelines for digital assets, delineating oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Myriad: What are your predictions on the Clarity Act's future? Make a prediction here.During August's congressional recess, both sides actively engaged senators through meetings, local events, opinion pieces, phone calls, emails, and advertisements, according to a report by Reuters.
The advocacy group Stand With Crypto, which is supported by Coinbase and claims 3 million members, stated that its supporters made nearly 50,000 calls or emails to Congress in August, while also organizing events and publishing pro-Clarity Act op-eds in local media. In Georgia, Tia Williams, the chapter president, met with staff from Democratic Senator Raphael Warnock, who has previously opposed the bill's advancement through the Senate Banking Committee.
Crypto organizations have invested over $190 million in lobbying ahead of the upcoming midterm elections in November.
The Blockchain Association initiated the Clarity for America campaign in July to encourage individuals and businesses to reach out to their senators in support of the legislation.
While the cryptocurrency sector is advocating for favorable regulations, community banks are also mobilizing their own lobbying efforts.
The Independent Community Bankers of America has facilitated meetings between local bankers and senators in their home states, alongside running television advertisements that call for amendments to the bill.
“Recent polling by ICBA shows that small businesses recognize the essential role of community banks in supporting local economies and want to ensure the Clarity Act does not undermine this crucial source of credit,” stated ICBA President and CEO Rebeca Romero Rainey in a press release. “ICBA continues to urge lawmakers to ensure that the Clarity Act includes a strong prohibition on stablecoin yield to maintain the ability of community banks to facilitate $4.1 trillion in total lending activity across local communities.”
A significant point of contention revolves around stablecoin rewards. Banking organizations argue that permitting crypto platforms to offer rewards on stablecoins could siphon deposits from traditional banks.
Conversely, cryptocurrency firms contend that stablecoin rewards should remain accessible and that clearer federal regulations are essential for the industry’s viability in the U.S. The legislation is also encountering pushback regarding money laundering protections and ethical restrictions on the cryptocurrency interests of government officials.