Cody Carbone urges Senate to move CLARITY Act as debate drags on
Crypto industry advocate Cody Carbone, CEO of The Digital Chamber, used testimony at the Senate Banking Committee’s “The Affordability Agenda” hearing to press lawmakers to advance the Digital Asset Market Clarity Act — commonly known as the CLARITY Act — arguing that digital assets can reduce costs for consumers and inject competition into legacy payments systems.
Carbone told senators that blockchain-based financial services offer faster settlement, lower payment fees and easier access to financial products, which he said could help wrestle down everyday expenses. Despite his push, most senators at the hearing did not directly engage with his crypto-focused comments. Among those who did, Senator Jim Banks queried Carbone about the costs of international remittances and how U.S. dollar–pegged stablecoins stack up against existing payment rails. Senator John Kennedy expressed general support for crypto but cautioned that digital assets are not the primary driver of the nation’s affordability problems.
The CLARITY Act, which aims to create a clearer regulatory framework for digital assets in the U.S., remains in limbo: Senate leadership has not scheduled a floor vote even as lawmakers say they expect to consider the bill in the coming weeks. That uncertainty is fueling fresh scrutiny and lobbying from multiple directions.
On June 23, the Alliance to End Human Trafficking urged Senate leaders to revisit Section 604 of the bill — a provision that incorporates the Blockchain Regulatory Certainty Act — warning that it could hamper authorities’ ability to trace financial flows tied to crimes like human trafficking. The group called for stronger anti-money-laundering safeguards before the bill advances. Separately, some lawmakers continue to press for additional ethics-related provisions to be included in the final text.
Pressure has also come from industries outside crypto. Gambling trade groups have asked senators to explicitly prevent the legislation from enlarging the Commodity Futures Trading Commission’s authority over sports betting facilitated by prediction-market platforms. That request ties into a broader dispute between the CFTC and prediction-market operators such as Kalshi and Polymarket, with the regulator asserting exclusive jurisdiction over those markets.
Market-watchers and industry figures say the bill’s fate could influence institutional capital flows into crypto. Financial commentator Ric Edelman has argued that regulatory uncertainty is a key reason large pools of capital have stayed largely on the sidelines, even as major asset managers and banks — including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco and Fidelity — expand blockchain and tokenization projects. Edelman has claimed that as many as 95% of institutions without crypto exposure might enter the market if the CLARITY Act becomes law, and pointed to Bitcoin ETF outflows and vocal opposition from lawmakers such as Bernie Sanders and Elizabeth Warren as factors contributing to investor caution.
With revisions and competing stakeholder concerns still in play, the CLARITY Act’s path forward remains uncertain. Lawmakers and regulators will likely continue negotiating text and safeguards in the coming weeks, and the bill’s progress will be watched closely by both the crypto industry and traditional financial institutions.
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