Crypto Industry Swallows U.S. Congress...Regulatory Bill Overturned by 'Money Bomb' Lobbying

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As the cryptocurrency industry nears a historic legislative victory in the U.S. Congress, analysis suggests that this achievement is backed by an unprecedented influx of political funding.

According to U.Today on May 15 (local time), as the U.S. Senate Banking Committee advanced the Digital Asset Market Clarity Act, the cryptocurrency industry achieved a significant political breakthrough after months of intense debate. This bill is considered a key piece of legislation that establishes the regulatory framework long demanded by the crypto industry, and the industry strongly welcomed its progress.

Political analyst Brendan Pedersen analyzed that this achievement is closely linked to the targeted campaign spending by cryptocurrency groups. While crypto lobbying has existed for years, it has grown into a powerful political force capable of securing major victories in Congress in recent years, he explained. He noted that the strong connection between the crypto industry's vast financial resources and subsequent legislative movements is raising concerns about how regulatory bills are being drafted.

Senator Elizabeth Warren (D-MA), a prominent critic of cryptocurrency, pushed back, stating that the bill's progress was not the result of natural public demand. Critics point out that if financial regulations are designed under the influence of political funding from a specific industry, industry interests may take precedence over public welfare.

Conversely, lawmakers who supported the bill emphasized that it was not merely a response to industry complaints but the result of long-standing bipartisan negotiations. Senator Cynthia Lummis (R-WY) stated that the bill was the most challenging legislative task she had undertaken, and Senator Mark Warner (D-VA) explained that thousands of hours were invested in its preparation. Democratic members within the committee were also divided, with Senator Angela Alsobrooks (D-MD), who supported the bill's advancement, arguing that the core of the legislation was consumer protection, not favoring the industry.

There was also strong opposition from banks and law enforcement agencies. Banks strongly opposed the bill, deeming the stablecoin yield limits insufficient, while law enforcement agencies worried that regulatory loopholes could facilitate money laundering. However, the concerns of these groups were not reflected during the Senate Banking Committee's review process, and Senator Tim Scott (R-SC), who chairs the Senate Banking Committee, deemed several proposed amendments procedurally inappropriate. This legislative progress demonstrates that the cryptocurrency industry is no longer a peripheral industry in U.S. politics but has risen as a powerful interest group capable of shifting the legislative landscape.

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