Crypto and banking lobbies step up pressure on US senators ahead of key vote

A high-stakes lobbying battle over cryptocurrency regulation has moved to the home states of US senators during the congressional summer recess. Both the crypto industry and banking groups are making final appeals ahead of a September 15 procedural vote on the Clarity Act, a bill that would define which digital tokens are securities or commodities and which agencies would oversee them.

The crypto industry, which has spent heavily on political campaigning, argues the legislation is needed to remove legal uncertainty and keep digital-asset businesses in the United States. Advocacy group Stand With Crypto says its supporters contacted members of Congress nearly 50,000 times in August through calls and emails. The group has also placed opinion pieces in local newspapers and hosted events in several states to build grassroots support.

Mason Lynaugh, executive director of Stand With Crypto, said the recess strategy is about showing the community's presence in every state and congressional district. The group is backed by Coinbase and counts about 3 million advocates. It is also arranging in-person meetings between lawmakers and crypto supporters, including college students in Georgia.

The bill has strong backing from the White House and Republican President Donald Trump, who courted crypto donors during his campaign. However, its path through the Senate is uncertain. Democrats say the bill lacks adequate money-laundering and ethics protections. Some Republicans, including Senators James Lankford of Oklahoma and Mike Rounds of South Dakota, have raised concerns that certain digital tokens could compete with bank deposits and hurt lending.

The Independent Community Bankers of America is mobilizing its members to meet senators in their home districts and voice opposition to the stablecoin-related provision. The group has also run television advertisements in Washington and other states, including during the U.S. Open tennis tournament, warning that the bill could harm Main Street lending.

In Georgia, Stand With Crypto chapter president Tia Williams said she met with staff of Senator Raphael Warnock, a Democrat who voted against advancing the bill in committee. She said the senator's office is knowledgeable about the space but wants to ensure everyday Americans are protected. The chapter is arranging for local students to visit Warnock's office as part of its advocacy push.

The Blockchain Association, a Washington-based industry group, launched a website in late July to help individuals write to their senators. Users can choose issues that matter to them and select a preferred tone for their messages. CEO Summer Mersinger said the group needs to keep the pressure up.

Crypto companies are eager to pass the bill this year, as polls suggest Democrats could retake the House of Representatives in November, which would likely end what many see as a rare legislative opportunity. The industry has already spent at least $190 million on political activities ahead of those elections.