Cody Carbone, CEO of The Digital Chamber, renewed calls for lawmakers to advance the CLARITY Act, arguing that digital assets can lower costs for consumers through faster transactions, reduced payment fees, and easier access to financial assets. His testimony came before the Senate Banking Committee's hearing on affordability, yet the bill has not been scheduled for a floor vote.
Senators show little engagement, only two directly address crypto
During the hearing titled "The Affordability Agenda," most senators did not directly engage with Carbone's comments on cryptocurrency. Senator Jim Banks questioned him about international remittance costs and how dollar-pegged stablecoins compare to existing payment methods. Senator John Kennedy expressed support for cryptocurrency but suggested digital assets were not the primary driver of affordability challenges.
Carbone's appearance coincides with Senate deliberations on the Digital Asset Market Clarity Act. While lawmakers are expected to consider the bill in the coming weeks, leadership has yet to schedule a vote.
Anti-trafficking groups and gambling industry push back
On June 23, the Alliance to End Human Trafficking urged Senate Majority Leader John Thune and Minority Leader Chuck Schumer to revisit Section 604 of the bill, which incorporates the Blockchain Regulatory Certainty Act. The organization argued that the provision could make it harder for authorities to track financial activity linked to human trafficking. They called for stronger anti-money laundering protections before the bill advances.
Separately, gambling industry organizations asked the Senate to clarify that the legislation would not expand the CFTC's jurisdiction over sports betting conducted through prediction market platforms. This follows an ongoing dispute between the CFTC and operators like Kalshi and Polymarket, with the regulator claiming exclusive jurisdiction over those markets.
Institutional capital waits, industry figures see tipping point
Ric Edelman argued that regulatory uncertainty remains the main reason large pools of capital have not entered crypto. He noted that institutions including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco, and Fidelity continue expanding blockchain and tokenization initiatives despite volatile crypto prices.
Edelman predicted that up to 95% of institutions currently lacking crypto exposure could enter the market if the CLARITY Act becomes law. He also cited Bitcoin ETF outflows and opposition from lawmakers like Bernie Sanders and Elizabeth Warren as factors contributing to investor caution.
For now, the CLARITY Act's fate remains uncertain. Opposition from anti-trafficking groups and the gambling industry adds complexity, while institutions wait for regulatory clarity before committing capital.