Cody Carbone presses crypto agenda as CLARITY Act stalls in Senate

Cody Carbone, CEO of The Digital Chamber, told a Senate Banking Committee hearing this week that digital assets can lower consumer costs. Faster payments, reduced fees, easier access to financial tools – Carbone argued blockchain-based services could introduce competition to traditional payment networks. The hearing, titled The Affordability Agenda, drew few direct questions from senators on his crypto comments.

Senator Jim Banks asked about international remittances and how dollar-pegged stablecoins compare with existing methods. Senator John Kennedy expressed support for cryptocurrency. He said digital assets were not the primary factor behind the country's affordability challenges.

The legislation Carbone came to promote, the Digital Asset Market Clarity Act, known as the CLARITY Act, aims to establish a U.S. regulatory framework for digital assets. Senate leadership has not scheduled a floor vote. The bill faces growing opposition from two unexpected quarters.

On June 23, the Alliance to End Human Trafficking (AEHT) sent letters to Senate Majority Leader John Thune and Minority Leader Chuck Schumer. The group urged lawmakers to revisit Section 604 of the bill, which incorporates the Blockchain Regulatory Certainty Act. In the letter, the AEHT argued the provision could make it harder for authorities to track financial activity linked to human trafficking. Stronger anti-money laundering protections should be added before the legislation advances, the organization said.

Separately, gambling industry organizations asked the Senate to clarify that the bill would not expand the Commodity Futures Trading Commission's authority over sports betting conducted through prediction market platforms. The request follows an ongoing jurisdictional dispute between the CFTC and operators such as Kalshi and Polymarket.

Outside the legislative process, Ric Edelman has argued that regulatory uncertainty is the main barrier to institutional crypto adoption. Edelman told lawmakers that institutions including BlackRock, JPMorgan, Morgan Stanley, Franklin Templeton, State Street, Invesco, and Fidelity continue expanding blockchain and tokenization initiatives. He predicted that as many as 95% of institutions that currently lack crypto exposure could enter the market if the CLARITY Act becomes law. He also cited Bitcoin ETF outflows and opposition from lawmakers such as Bernie Sanders and Elizabeth Warren as factors that have contributed to investor caution.

Morgan Stanley (stock page, Alpha Score 64/100) and State Street (stock page, Alpha Score 75/100) are among the institutions Edelman named. Their crypto exposure remains limited without regulatory clarity.

The next concrete catalyst is a floor vote. Senate leadership has not scheduled one. Until then, the bill's fate hinges on whether lawmakers address the trafficking and gambling objections.