Crypto Ads Target Banks to Push CLARITY Act Before Sept. 15 Vote

Crypto industry groups this week began a seven-figure national cable ad campaign aimed at banks to pressure lawmakers to open debate on the CLARITY Act before a Senate cloture vote scheduled for Sept. 15. The ads were paid for by the Cedar Innovation Foundation, a 501(c)(4) tied to the Fairshake political network, and air in three cable spots.

Two of the advertisements emphasize consumer protections and cite endorsements from several law-enforcement organizations. The campaign highlights a provision that targets fraud at crypto ATMs, and notes that AARP has expressed support for that anti-fraud language rather than for the full bill.

The third ad directly criticizes banks for opposing parts of the legislation. It uses imagery of pigs at a trough and accuses the banking sector of enjoying a profit “feeding frenzy” while resisting competition from crypto platforms.

Smaller banks have urged lawmakers to limit stablecoin reward programs, arguing that yield-like incentives offered by some crypto platforms could siphon deposits from traditional lenders. Those concerns have created negotiation points in drafting rules that would split oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission.

Law-enforcement sentiment has shifted in recent weeks. The National Sheriffs’ Association moved from opposing the bill to a neutral position after raising earlier concerns that the legislation might hinder prosecutions of illicit crypto activity. Other law-enforcement groups continue to support the proposal.

Political disputes remain unresolved. A central disagreement involves ethics restrictions on a sitting president and family members with digital-asset interests. Republican Sens. Mike Rounds and Thom Tillis have indicated the bill’s prospects have weakened because Democrats and the White House have not reached agreement on language addressing former President Donald Trump and his family. Two Democratic aides described limited progress on that demand.

A White House spokesperson countered that President Trump wants Congress to pass the CLARITY Act and that the administration has worked to negotiate what it characterized as an extensive ethics provision.

Supporters of the bill point to its provisions on customer protections. The draft would require covered intermediaries to segregate customer assets and could treat qualifying holdings as customer property in bankruptcy, changes intended to address issues exposed by failures such as FTX and Celsius. How protections apply would depend on how assets are held and the contractual terms between customers and platforms.

Sen. Cynthia Lummis, a leading backer of the legislation, framed the upcoming vote in stark terms: “Next week, my colleagues have a choice,” she said, urging colleagues to act to preserve U.S. leadership in digital finance.

Senators have offered mixed impressions of constituent interest. Republican Sen. Roger Marshall reported little feedback from voters in his state about the bill, suggesting the issue has not become a top public concern for some lawmakers.

The Sept. 15 cloture vote would only open debate; additional procedural steps and a final passage vote would follow. The House has canceled some planned voting weeks later in September, narrowing the calendar for Congress to complete the legislation before the midterm elections. Advocates warn that failure to secure progress now could delay market-structure rules beyond the current session of Congress.