With the Senate vote approaching, CCI released a detailed response to what it calls the biggest misconceptions about the CLARITY Act, from AML concerns to stablecoin rewards and self-custody protections.
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The Crypto Council for Innovation (CCI) is pushing back against what it calls false claims about the CLARITY Act, weeks before the U.S. Senate takes up the bill for a floor vote.
One of the most common criticisms, CCI said, is that the legislation is weak on anti-money laundering. The council argues the bill expands AML and counter-terror financing requirements, improves intelligence sharing between regulators and private companies, gives the U.S. Treasury additional authority, and provides $150 million in additional funding for FinCEN. CCI pointed to support from one of the world's largest law enforcement organizations as evidence the bill strengthens investigations.
Another criticism is that the CLARITY Act does not protect crypto investors. CCI rejected that claim, arguing 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, according to the council. The group also noted 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, which backs the legislation over clearer rules and new economic opportunities.
CCI also dismissed concerns that the bill could trigger 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. Existing Bank Secrecy Act rules, anti-money laundering laws, sanctions, and terrorism financing regulations would still fully apply, it stressed.
The crypto industry 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.
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