LOS ANGELES [BE Exclusive]: The battle over landmark US cryptocurrency legislation is entering a critical phase, with crypto advocates and banking groups taking their campaigns directly to senators’ home states ahead of a pivotal procedural vote on September 15.
The Clarity Act has become the focus of an increasingly intense lobbying effort as the crypto industry seeks clearer rules governing digital assets. The legislation would establish distinctions between tokens classified as securities and those treated as commodities, while also clarifying the roles of federal regulators.
The crypto sector has invested hundreds of millions of dollars in political campaigning to advance the legislation. However, the bill faces resistance from Democrats and some Republicans who argue that it does not provide adequate protections against money laundering, conflicts of interest and risks to the traditional banking system.
With Congress on its summer recess since August 8, both sides have shifted their efforts away from Washington and into senators’ states. Advocacy campaigns have included local newspaper opinion pieces, letter-writing efforts, television advertising, grassroots events and meetings with lawmakers and their staff.
“Our strategy during recess is … about demonstrating the presence and enthusiasm of our community, in every state and every congressional district,” said Mason Lynaugh, executive director of Stand With Crypto, an advocacy organization backed by crypto company Coinbase.
Stand With Crypto says it has about 3 million advocates, including individual cryptocurrency supporters and technology entrepreneurs. Some have published opinion articles in newspapers in Oklahoma, Kentucky and Kansas calling on lawmakers to support the Clarity Act.
The organization has also held events in Iowa, Michigan and other states. During August, its supporters contacted members of Congress by phone or email nearly 50,000 times, while the group has worked to arrange face-to-face meetings between advocates and lawmakers, Lynaugh said.
The push comes as the White House strongly supports the legislation. President Donald Trump made cryptocurrency a prominent issue during his campaign, promising policies favorable to the roughly $2 trillion digital-asset market.
For crypto companies, the urgency is heightened by the approaching November midterm elections. Polling has indicated that Democrats could regain control of the House of Representatives, potentially closing what the industry considers a rare opportunity to establish a comprehensive federal framework for digital assets.
The sector has already spent at least $190 million on the 2026 US elections, making the recess campaign an important demonstration of its expanding political influence.
“We are showing that the crypto community is everywhere and that crypto voters are paying attention,” Lynaugh said.
The Blockchain Association, which represents cryptocurrency companies in Washington, launched clarityforamerica.com in late July to help supporters contact their senators. The platform allows users to select issues they consider important, including consumer protection and regulatory certainty, and choose the tone of their messages.
“We’ve got to just keep that pressure up,” said Summer Mersinger, chief executive of the Blockchain Association.
Banking groups, meanwhile, are intensifying their opposition.
The crypto industry maintains that legal certainty is essential to keeping investment, jobs and technological development in the United States. Jason Dodson, president of the Kentucky chapter of Stand With Crypto, made that case in an August 24 opinion article urging Republican Senator Rand Paul of Kentucky to support the legislation.
“Legal chaos … drives capital, talent and technological innovation offshore,” Dodson wrote.
Opponents argue that the legislation does not go far enough on safeguards against money laundering and ethical risks. Some Republican senators have also raised concerns over provisions related to stablecoins and other digital tokens.
Senators James Lankford of Oklahoma and Mike Rounds of South Dakota are among Republicans who have warned that certain digital assets could compete directly with bank deposits. They say that could potentially weaken banks’ deposit bases and affect their ability to provide loans.
The Independent Community Bankers of America has been particularly focused on provisions involving stablecoins. The organization has mobilized community bankers to meet senators in their home offices and press their concerns.
Paul Merski, ICBA’s executive vice president of congressional relations, said the organization has expanded its efforts beyond the 24-member Senate Banking Committee, which handled the legislation and voted to advance it in May.
“During the August recess, the focus has really been on continuing to have the senators hear from the grassroots, and particularly back in their home states with local bankers,” Merski said.
The banking group has also run television advertisements in Washington, D.C., and targeted states arguing that cryptocurrency ranks among the lowest priorities for American voters. One advertisement aired during the US Open tennis tournament and called for changes to the legislation aimed at protecting lending by community banks.
The offices of Senators Paul, Rounds and Lankford did not respond to requests for comment.
Georgia has emerged as another battleground in the lobbying campaign. Tia Williams, president of Stand With Crypto’s Georgia chapter and founder of blockchain software company DocuHero, said she met with staff at Democratic Senator Raphael Warnock’s field office during the recess to discuss the legislation.
Warnock voted against advancing the Clarity Act from the Senate Banking Committee. His office did not respond to a request for comment.
Williams said Warnock and his staff demonstrated a strong understanding of the cryptocurrency sector while emphasizing the need to protect ordinary Americans.
“One of the takeaways that I’ve learned from him and his staff is they’re very knowledgeable of this space … but they also want to make sure that the everyday American is protected,” Williams said.
Stand With Crypto’s Georgia chapter is also planning to bring local college students interested in cryptocurrency and blockchain technology to Warnock’s office. The group has held advocacy events in Athens and Augusta as it seeks to build local support.
“I think the work that we’re doing here in Georgia is pivotal,” Williams said.
