Crypto isn’t the Problem with the US Economy, Says Senator

Cody Carbone, CEO of the cryptocurrency advocacy group The Digital Chamber, received a largely muted response to his testimony at a Senate Banking Committee hearing on affordability.

In a Tuesday hearing titled The Affordability Agenda, Carbone said that the digital asset industry could help solve affordability problems in the United States, including through faster and cheaper transactions, putting “competitive pressure” on existing payment systems, and reducing barriers to “owning and transferring assets.”

However, the majority of lawmakers present did not question Carbone directly or inquire about digital assets, with the exception of Indiana Senator Tim Banks and Louisiana Senator John Kennedy. Banks asked the Digital Chamber CEO about the costs related to foreign remittances compared to US dollar-pegged stablecoins, while Kennedy largely dismissed Carbone’s testimony.

“Mr. Carbone, you seem to be here to promote cryptocurrency,” said Kennedy. “I love cryptocurrency, but I don’t think that’s the problem with our economy.”

The Digital Chamber CEO Cody Carbone speaking on Tuesday. Source: Senate Banking Committee

Carbone’s remarks centered around the US Senate moving forward on the Digital Asset Market Clarity (CLARITY) Act, which the banking committee advanced in May. The full chamber is expected to vote on the legislation in a matter of weeks, but many lawmakers are calling for additional ethics provisions, potentially complicating passage in the Senate.

Related: Crypto lobby urges Congress to pass staking and mining tax bill as is

CLARITY Act still in limbo amid pushback from interest groups

In addition to lawmakers’ concerns about ethics in the crypto market structure bill, last week gambling industry groups called for the Senate to clarify that the legislation would not allow the US Commodity Futures Trading Commission (CFTC) to oversee sports betting in prediction markets. The financial regulator, under Chair Michael Selig, has claimed “exclusive jurisdiction” over platforms such as Kalshi and Polymarket.

Some lawmakers expect that the CLARITY Act will pass through the Senate before the chamber breaks for an August recess. As of Tuesday, no floor vote was scheduled in the Senate.

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