Sanders and McKenzie Slam CLARITY Act as a Handout to Crypto Industry
US Senator Bernie Sanders and actor Ben McKenzie have expressed strong opposition to the proposed CLARITY Act, arguing that it would weaken oversight of the cryptocurrency industry. In a discussion focused on digital asset regulation, Sanders noted that Congress could soon vote on the bill, which he described as an important moment for policy-making in this area.
McKenzie characterized cryptocurrencies as an asset class primarily used for speculation, rather than investing. He claimed that most retail participants treat it as a form of gambling rather than investing, citing the lack of traditional fundamentals such as cash flows or products/services.
The industry's profits largely accrue to insiders, exchanges, and token issuers, according to McKenzie, with 'the people who win over and over again' being those that issue these cryptocurrencies and run crypto exchanges.
McKenzie also criticized the CLARITY Act for shifting much of the oversight from the SEC to the CFTC, which he claimed has significantly fewer resources. He argued that this would provide special treatment to the crypto industry compared with traditional financial firms, and failed to address concerns about foreign investment and potential conflicts of interest.
The pair also expressed concern about the industry's campaign spending, with McKenzie claiming that crypto-related political action committees spent roughly $240 million during the 2024 election cycle.