Crypto Council Pushes Back Against CLARITY Act Misconceptions

The Crypto Council for Innovation (CCI) is pushing back against what it calls false claims surrounding the CLARITY Act, a bill set to be voted on by the US Senate. The CCI warns that these misconceptions could confuse investors and slow down one of the biggest crypto regulations in US history.

According to the council, one of the most common claims is that the bill is weak on anti-money laundering (AML) and national security. However, the CCI argues that this is false, citing language in the legislation that expands AML requirements, improves intelligence sharing between regulators and private companies, gives the US Treasury additional authority to fight money laundering risks, and provides $150 million in additional funding for FinCEN.

The council also points out that a major law enforcement organization supports the bill, saying it strengthens investigations instead of weakening them. Furthermore, the CCI notes that consumer protection remains another key debate surrounding the CLARITY Act, with some critics arguing that it does not properly protect crypto investors. The council strongly rejects this claim, stating that the bill creates one of the strongest consumer protection frameworks ever proposed for digital assets.

Additionally, the CCI addresses concerns about stablecoins and self-custody protections in the CLARITY Act. The council notes that bipartisan language introduced by Senators Thom Tillis and Angela Alsobrooks already blocks stablecoin issuers from offering interest or rewards that work like traditional bank deposits. They also stress that existing Bank Secrecy Act rules, anti-money laundering laws, sanctions, and terrorism financing regulations would still fully apply.