Digital Chamber CEO Urges CLARITY Act to Cut Consumer Costs; AML, Jurisdiction Fight Looms
Cody Carbone, CEO of The Digital Chamber, renewed calls for Congress to act on the CLARITY Act during a Senate Banking Committee hearing on affordability, arguing that clearer regulation would help bring the cost-saving benefits of digital assets to consumers. Testifying at the hearing titled “The Affordability Agenda,” Carbone told lawmakers that blockchain-based financial services can lower consumer costs by enabling faster transactions, reducing payment fees and improving access to financial assets. He said digital rails could introduce competition to legacy payment networks and reduce friction in moving money and assets. Most senators at the hearing did not engage directly with his crypto-focused comments, though a few did press him on specifics. Senator Jim Banks questioned Carbone about international remittance costs and how U.S. dollar–pegged stablecoins stack up against existing payment methods. Senator John Kennedy, while expressing support for cryptocurrency, suggested that digital assets are not the main driver of the country’s affordability challenges. The hearing comes as the Senate continues to weigh the Digital Asset Market Clarity Act (CLARITY Act), legislation designed to create a regulatory framework for digital assets in the U.S. Lawmakers are expected to consider the bill in the coming weeks, but Senate leaders have not yet scheduled a floor vote. Concerns about the bill have surfaced during the review process. On June 23, the Alliance to End Human Trafficking urged Senate Majority Leader John Thune and Minority Leader Chuck Schumer to revisit Section 604, which folds in the Blockchain Regulatory Certainty Act. The group warned that the provision could make it harder for authorities to trace financial activity tied to crimes such as human trafficking and called for stronger anti-money‑laundering (AML) protections before the bill advances. Lawmakers are also debating ethics-related provisions that some want included in the final text. Pressure is coming from other corners as well. Gambling industry groups have asked the Senate to clarify that the CLARITY Act would not expand the Commodity Futures Trading Commission’s authority over sports betting conducted on prediction market platforms. That request echoes an ongoing jurisdictional dispute between the CFTC and prediction‑market operators like Kalshi and Polymarket, with the regulator asserting exclusive oversight. Industry voices link the bill’s fate to institutional adoption. Financial adviser Ric Edelman has argued that regulatory uncertainty remains a chief reason many large pools of capital have stayed on the sidelines, even as firms such as BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco and Fidelity expand blockchain and tokenization initiatives. Edelman predicted that as many as 95% of institutions currently without crypto exposure might enter the market if the CLARITY Act becomes law, though he noted investor caution driven by factors like Bitcoin ETF outflows and opposition from lawmakers including Bernie Sanders and Elizabeth Warren. As debate continues, the CLARITY Act’s path will likely hinge on resolving AML and jurisdictional concerns while balancing lawmakers’ broader policy and ethical priorities — a combination that will determine whether clearer rules arrive to unlock broader institutional participation in digital assets. Read more AI-generated news on: undefined/news
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