Sanders, McKenzie Blast CLARITY Act as Crypto 'Gambling' Bailout

The CLARITY Act would shift much of the oversight of digital assets from the SEC to the Commodity Futures Trading Commission. McKenzie argued the CFTC has fewer resources than the SEC, and said the bill would give the crypto industry special treatment compared with traditional financial firms. He also criticized the legislation for not including ethics provisions that would prevent elected officials from profiting through crypto-related businesses while in office.

Sanders and McKenzie also hit the industry's political spending. McKenzie claimed crypto-related political action committees spent roughly $240 million during the 2024 election cycle and have continued to spend heavily in the current cycle. The industry's campaign strategy involves supporting candidates favorable to crypto legislation while opposing those viewed as hostile, he said.

Sanders said the spending reflects broader concerns about the influence of wealthy special interests on U.S. elections. McKenzie also alleged that Trump's crypto businesses generated substantial personal income, raising concerns about foreign investment and potential conflicts of interest. He said the CLARITY Act does not adequately address those concerns.

The odds of the CLARITY Act passing have already fallen to 27% after Senate delays, according to crypto market analysis.