The Crypto Council for Innovation (CCI) has released a “Myth vs. Fact” document defending the Digital Asset Market CLARITY Act, seeking to counter criticism of the legislation as the Senate prepares for another round of negotiations.
In a series of posts on X on Monday, the industry advocacy group said it was returning to Capitol Hill to address what it described as misconceptions surrounding the bill.
The document argues that the CLARITY Act would expand regulatory oversight, strengthen consumer protections, and reinforce anti-money laundering measures rather than weaken existing safeguards.
Why CCI says CLARITY Act is tougher on illicit finance
One of the report’s primary arguments addresses criticism that the CLARITY Act is weak on illicit finance and national security. CCI argues the legislation would establish the most comprehensive digital asset law enforcement framework proposed to date by expanding anti-money laundering (AML) and counter-terrorism financing (CFT) requirements across the industry.
According to the document, the bill would direct the Treasury Department to clarify Bank Secrecy Act and sanctions obligations, provide an additional $150 million to FinCEN for AML and CFT implementation, expand grants and training for law enforcement agencies, require anti-fraud measures for cryptocurrency kiosks, and direct the National Institute of Standards and Technology (NIST) to develop cybersecurity standards for decentralized finance.
The paper also rejects the argument that cryptocurrency is primarily used for criminal activity, stating that blockchain transactions are publicly traceable and that the legislation would strengthen federal tools to investigate illicit finance.
What the bill would change for crypto investors
CCI also disputes claims that the CLARITY Act weakens securities laws or investor protections. According to the document, the legislation preserves the SEC’s authority over digital asset securities while creating a separate regulatory framework for qualifying digital asset offerings. It also includes crypto-specific disclosure requirements, insider trading restrictions, limits on token sales by insiders, and expanded disclosure obligations for issuers and intermediaries.
The paper further states that the bill requires segregation of customer assets, qualified custodians, conflict-of-interest safeguards, bankruptcy protections, and investor education materials explaining crypto risks and fraud awareness.
CCI clarifies self-custody debate
Another section addresses criticism surrounding self-custody and decentralized finance. CCI argues that the bill’s self-custody protections apply only to lawful ownership of digital assets and do not restrict the government’s ability to enforce anti-money laundering, sanctions, terrorism financing, or Bank Secrecy Act requirements.
The document also states that developers engaged in neutral software development would remain protected while protocols controlled by identifiable entities would still be subject to registration and regulatory obligations where applicable.
According to CCI, the Blockchain Regulatory Certainty Act (BRCA) language included in the legislation preserves existing AML and CFT authorities while providing legal clarity for non-custodial software developers.
The stablecoin debate isn’t going away
The report also challenges claims that the CLARITY Act could encourage bank deposit flight through stablecoins. CCI points to bipartisan language negotiated by Senators Thom Tillis and Angela Alsobrooks that prohibits payment stablecoins from offering interest or rewards that are economically equivalent to bank deposits. The legislation also includes anti-circumvention provisions and requires a study examining whether stablecoin rewards affect bank deposits.
The organization argues these safeguards directly address concerns raised by banks while allowing payment stablecoins to function within a regulated framework.
CCI says market structure legislation is still needed
The document concludes that market structure legislation remains necessary despite the continued growth of cryptocurrency adoption. According to CCI, without federal legislation, digital asset activity will either continue without consistent investor protections or increasingly shift to jurisdictions outside U.S. regulatory oversight.
The organization maintains that the CLARITY Act would establish clearer responsibilities between the SEC and CFTC, strengthen federal oversight of digital asset markets, and provide a defined regulatory framework intended to keep crypto innovation and market activity within the United States.
Support builds as Senate nears a key vote
Support for the CLARITY Act has also grown among industry leaders as the Senate weighs its next steps. On Sunday, SkyBridge Capital founder Anthony Scaramucci urged lawmakers to back the latest Senate draft, arguing that continued demands for changes could jeopardize the bill’s chances of becoming law.
In a post on X, Scaramucci acknowledged the legislation was not perfect but said it represented a significant improvement over the current regulatory landscape. “Is CLARITY perfect? No. Could the ethics language do more? Yes,” he wrote, adding that lawmakers should compare the proposal with the existing regulatory framework rather than an ideal version that may never pass. He described the bill as the product of months of bipartisan negotiations and concluded with a direct appeal to Congress: “Bank the win.”
The comments come as the Senate is expected to hold an initial procedural vote on the CLARITY Act before August 7, although full passage before the scheduled recess remains uncertain. According to journalist Brendan Pedersen, an initial vote is still anticipated this week, but procedural hurdles, including the absence of a filed cloture motion and the bill’s 60-vote threshold, make final passage before adjournment unlikely without unanimous consent.
Negotiations continue over the bill’s ethics provisions, which remain one of the biggest obstacles to bipartisan support. The latest draft would temporarily prohibit the president, vice president, members of Congress, federal judges, and other senior officials from issuing or sponsoring cryptocurrencies while in office, with enforcement assigned exclusively to the Department of Justice.
The White House has described the proposal as an unprecedented ethics concession by President Donald Trump, while several Democrats have argued the language still requires stronger enforcement and broader restrictions.
The publication comes as Senate lawmakers continue negotiations over the CLARITY Act, with ethics provisions and bipartisan support remaining among the final issues before the legislation can advance to a floor vote.
Also Read: CLARITY Act Senate Vote: Expected Dates and Next Steps
