The Senate is set to conduct a procedural vote on the Clarity Act on September 15. The proposed legislation aims to establish federal rules for digital assets and distribute oversight between the Commodity Futures Trading Commission and the Securities and Exchange Commission.
Stand With Crypto, a Coinbase-backed group with 3 million supporters, reported nearly 50,000 calls and emails to Congress in August. The group also organized local events and published op-eds in local newspapers to support the bill.
The Blockchain Association established Clarity for America in July to facilitate communication between senators and supporters of the legislation. Crypto advocacy groups have spent at least $190 million leading up to the November midterm elections.
Community banks, represented by the Independent Community Bankers of America (ICBA), are lobbying for changes to the bill. The ICBA argues that stablecoin rewards could divert deposits from traditional banks, threatening the $4.1 trillion in total lending activity in local communities.
The ICBA is calling for a robust prohibition on stablecoin yield. Meanwhile, crypto firms maintain that rewards should remain available and that federal rules are necessary for the industry to operate within the United States.
The legislation also faces opposition regarding ethics restrictions on government officials' crypto interests and money-laundering safeguards.