Crypto Industry's $13M Lobbying Effort Falls Flat as Clarity Act Stalls

The cryptocurrency industry in the US spent a significant amount of money lobbying for the 'Clarity Act', a legislation that aims to provide a regulatory roadmap for digital assets. According to reports, the industry spent $13 million in the first half of the year directly lobbying lawmakers in Washington, D.C. to pass the bill.

Despite the heavy spending, the Clarity Act failed to advance in Congress this summer. The legislation is now in limbo as the congressional midterm elections approach, and analysts don't expect it to be revived until next year at the earliest.

One of the main reasons the bill stalled was due to concerns raised by US commercial banks, who lobbied heavily against the Clarity Act. They argued that the yield or interest offered on stablecoins and other digital assets would harm their businesses, as it could compete against interest provided on bank savings accounts and draw money away from financial institutions like Bank of America (BAC).

The crypto industry has amassed a war chest of over $100 million to campaign for politicians and legislation that are friendly towards the industry. However, the failure of the Clarity Act raises questions about the effectiveness of this lobbying effort.