Crypto and Banking Lobbyists Take Their Fight to Senators' Home States Ahead of Key Vote

Reuters, Sept. 9 — The battle over major cryptocurrency legislation has spilled over into the congressional summer recess, with the crypto industry and the banking sector launching a final lobbying blitz in senators' home states before a vote on the bill next week.

Crypto interests have poured hundreds of millions of dollars into promoting the Clarity Act, arguing it would give digital-asset firms a sound legal foundation. The Senate is scheduled to hold a procedural vote on September 15 that could determine the measure's fate, though analysts say its prospects look dim, as Democrats and some Republicans warn the bill lacks adequate safeguards and could unsettle the banking system.

Since the recess began on August 8, the crypto industry and banking groups have taken their fight to senators' home states, using op-eds, letter-writing campaigns and in-person gatherings to drum up grassroots backing and influence lawmakers, according to executives and public materials.

"Our strategy during recess is ... about demonstrating the presence and enthusiasm of our community, in every state and every congressional district," said Mason Lynaugh, executive director of Stand With Crypto, an advocacy group backed by crypto firm Coinbase.

Some of its 3 million advocates — everyday crypto supporters and tech entrepreneurs — have placed op-eds in local newspapers in Oklahoma, Kentucky and Kansas, among other states, urging Congress to pass the bill. The group has also hosted events in Iowa, Michigan and elsewhere to advocate for digital assets. During August, its supporters have called or emailed their members of Congress nearly 50,000 times, and the group is facilitating in-person meetings with lawmakers, Lynaugh said.

During his campaign, Republican U.S. President Donald Trump courted crypto cash by pledging to promote policies friendly to the $2 trillion cryptocurrency market, and the White House has strongly backed the Clarity Act. The bill would address what the crypto industry says is legal ambiguity by defining which tokens qualify as securities versus commodities, and which regulators oversee them.

Crypto companies are anxious to pass the bill this year because polls favor Democrats to retake the House of Representatives in the November midterm elections, likely extinguishing what many see as a once-in-a-generation legislative opportunity. But the industry's recess campaign is also an opportunity to showcase its growing political clout heading into those elections, on which it has already spent at least $190 million.

"We are showing that the crypto community is everywhere and that crypto voters are paying attention," Lynaugh said.

The Blockchain Association, a Washington group representing crypto companies, in late July launched the website clarityforamerica.com to help individuals and firms write to their senators to urge them to vote for the bill. Users can select from a list of issues that matter most to them, like "consumer protection" and "clear rules & certainty," as well as their preferred tone, such as "urgent but professional" or "passionate and heartfelt."

"We've got to just keep that pressure up," said Summer Mersinger, the Blockchain Association's CEO.

Banking Industry Pushback

Crypto companies argue that the Clarity Act, by providing legal certainty, is essential for the industry's future in the U.S., and will keep jobs in the country and preserve American dominance.

In an August 24 opinion piece pressing Kentucky Republican Senator Rand Paul to back the bill, Jason Dodson, who heads the Kentucky chapter of the Stand With Crypto alliance, wrote that "legal chaos ... drives capital, talent and technological innovation offshore."

Democrats, whose support is needed to clear the Senate's 60-vote threshold, say the bill lacks robust money-laundering and ethics safeguards. Some Republicans, including senators James Lankford of Oklahoma and Mike Rounds of South Dakota, have also expressed concerns that the bill would allow certain digital tokens to compete with bank deposits, potentially hurting lending.

The Independent Community Bankers of America, which has been fighting the stablecoin-related provision in Washington, has likewise been mobilizing its members across the country to meet with senators in their home offices to raise their concerns.

Paul Merski, ICBA's executive vice president of congressional relations, said the group is focusing on senators outside the 24-member Senate Banking Committee, which drafted the bill and voted it forward in May.

"During the August recess, the focus has really been on continuing to have the senators hear from the grassroots, and particularly back in their home states with local bankers," he added.

The group has been airing a TV commercial in Washington, D.C., and target states warning that "polls consistently rank crypto at the very bottom of issues important to American voters." It also aired an ad during the U.S. Open tennis tournament advocating to fix the bill and protect Main Street lending.

Spokespeople for senators Paul, Rounds and Lankford did not respond to requests for comment. A spokesperson for Dodson referred Reuters to Stand With Crypto.

Group Targets Warnock in Georgia

Tia Williams, president of the Stand With Crypto Georgia chapter and founder of blockchain-based software platform DocuHero, said she used the recess to sit down with staff at Senator Raphael Warnock's district office and discuss the bill.

Warnock voted against advancing the Clarity Act out of the Senate Banking Committee. His office did not respond to a request for comment.

"One of the takeaways that I've learned from him and his staff is they're very knowledgeable of this space ... but they also want to make sure that the everyday American is protected," Williams said.

The Georgia chapter is arranging for local college students enthusiastic about crypto and blockchain technology to visit Warnock's office too. The group has also held advocacy events in Athens and Augusta, Williams said.

"I think the work that we're doing here in Georgia is pivotal," she added.