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Just weeks before the U.S. Senate takes up the CLARITY Act, the crypto industry is fighting a different battle. Instead of lobbying lawmakers, the Crypto Council for Innovation (CCI) is now pushing back against what it calls false claims surrounding the bill.
It also warned that these myths could confuse investors and slow one of the biggest crypto regulations in U.S. history.
Crypto Council Counters the Biggest CLARITY Act Myths
With the Senate vote approaching, CCI released a detailed response addressing what it believes are the biggest misconceptions about the CLARITY Act.
One of the most common claims is that the bill is weak on anti-money laundering and national security. CCI says that is false.
According to the council, the legislation expands anti-money laundering (AML) and counter-terror financing requirements, improves intelligence sharing between regulators and private companies, gives the U.S. Treasury additional authority to fight money laundering risks, and provides $150 million in additional funding for FinCEN.
CCI also pointed to support from one of the world’s largest law enforcement organizations, saying the proposal strengthens investigations instead of weakening them.
Consumer Protection Remains Another Key Debate
Another criticism surrounding the CLARITY Act is that it does not properly protect crypto investors.
CCI strongly rejected that claim, arguing that the bill, together with the Senate Agriculture Committee’s Digital Commodities Intermediaries Act, creates one of the strongest consumer protection frameworks ever proposed for digital assets.
The organization also shows it support from the National Black Church Initiative, a coalition representing roughly 150,000 African American and Latino faith communities with nearly 27.7 million members.
According to CCI, the group supports the legislation because it believes clearer crypto rules could improve investor protection while creating new economic opportunities.
Stablecoin and Self-Custody Claims Also Face Pushback
CCI also dismissed concerns that the CLARITY Act could trigger large-scale bank deposit flight through stablecoins.
The council noted that bipartisan language introduced by Sens. Thom Tillis and Angela Alsobrooks already blocks stablecoin issuers from offering interest or rewards that work like traditional bank deposits.
The bill also requires regulators to study whether stablecoin rewards could impact the banking system.
Another myth, according to CCI, is that the bill creates loopholes through self-custody protections.
The council said the self-custody language only protects lawful wallet ownership and neutral software development. It stressed that existing Bank Secrecy Act rules, anti-money laundering laws, sanctions, and terrorism financing regulations would still fully apply.
Time Is Running Out for the CLARITY Act
The crypto industry now faces its biggest test before Congress leaves for its Aug. 10 summer recess.
CCI argues that without market structure legislation, crypto activity will either continue without clear investor protections or move outside the United States altogether.
With Senate leaders preparing for a floor vote, the next few weeks could determine whether the CLARITY Act moves forward.