Public Pressure Mounts on Senators as Anti-DeFi Group Launches Ads Against Crypto Bill

Public Pressure Mounts on Senators as Anti-DeFi Group Launches Ads Against Crypto Bill

An anti-DeFi campaign targets Senators for crypto legislation, with fears of $6.6 trillion in bank deposits at stake if stablecoins gain traction. Will the CLARITY Act survive?

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An advertisement campaign by the group Investors For Transparency is urging the public to contact Senators regarding pending cryptocurrency legislation. The ads, which aired on Fox News, advocate for the passage of crypto market structure laws that omit provisions related to decentralized finance (DeFi), which are viewed as a threat to traditional banking.

The campaign highlights concerns from banking lobbyists about the CLARITY Act, which could allow stablecoin issuers to offer interest-bearing products that might compete with bank deposits. According to the US Treasury, should stablecoins gain widespread acceptance, up to $6.6 trillion in traditional banking deposits could exit the banking system.

The Senate Banking Committee is scheduled to discuss the CLARITY Act on January 15 at 10:00 AM Eastern Time. However, internal conflicts among Democratic lawmakers and concerns about the upcoming 2026 midterm elections have raised doubts about the bill's timely passage. Some analysts predict it may not be enacted until 2027, with implementation possibly delayed until 2029.

Despite these challenges, Senate Banking Committee Chair Tim Scott remains optimistic about the legislation's potential to produce significant benefits for the American public.

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