The cryptocurrency industry in America spent $13 million U.S. lobbying in support of the “Clarity Act” legislation that failed to advance in Congress this summer.
The crypto industry spent millions of dollars directly lobbying lawmakers in Washington, D.C. to pass the Clarity Act, which provides a regulatory roadmap for digital assets.
In the first half of this year, crypto lobbyists swarmed Capitol Hill as the U.S. Senate debated the “Digital Asset Market Clarity Act” that is widely viewed as essential to the sector’s future.
In all, the industry spent $13 million U.S. on lobbying in the year’s first six months, with nearly all of that money linked to the Clarity Act bill.
By some estimates, crypto firms have amassed a war chest of more than $100 million U.S. to campaign for politicians and legislation that are friendly towards the industry.
However, despite the money spent, the Clarity Act failed to secure passage in the U.S. Senate. The legislation is now in limbo as the congressional midterm elections this November approach.
The legislation has been held up as Democrats in the Senate demand ethics provisions that would prevent politicians such as President Donald Trump from cashing in on crypto ventures.
Also, U.S. commercial banks lobbied heavily against the Clarity Act over concerns that yield or interest offered on stablecoins and other digital assets would harm their businesses.
Yield on stablecoins and other crypto could compete against interest provided on bank savings accounts and draw money away from financial institutions such as Bank of America (BAC).
Analysts don’t expect the Clarity Act to be revived in Congress until next year, at the earliest.
