Crypto Lobbying War Escalates in Senators' Home States Ahead of Key Vote

The cryptocurrency industry and the banking sector are escalating their lobbying efforts in senators' home states as they push for passage of the Clarity Act, a bill that would provide legal certainty for crypto companies.

According to Stand With Crypto, an advocacy group backed by Coinbase, its supporters have placed op-eds in local newspapers, hosted events, and made nearly 50,000 calls or sent emails to lawmakers during the congressional summer recess. The group's executive director, Mason Lynaugh, said their strategy is to demonstrate the presence and enthusiasm of the crypto community in every state and congressional district.

The Senate will take a procedural vote on September 15 that could determine the fate of the bill, but its chances look slim due to concerns from Democrats and some Republicans about insufficient safeguards. The White House has strongly backed the Clarity Act, which would define which tokens qualify as securities versus commodities and which regulators oversee them.

The banking industry is also pushing back against the bill, with some senators expressing concerns that it could allow certain digital tokens to compete with bank deposits, potentially hurting lending. The Independent Community Bankers of America has been mobilizing its members across the country to meet with senators in their home offices and raise their concerns.