NO to Crypto

Friends,

I’m sorry to say that several Democratic senators appear willing to support the CLARITY Act—a sweeping pro-crypto bill.

A crucial procedural cloture vote is scheduled for tomorrow. The vote requires 60 senators to advance the cryptocurrency framework. Republicans can’t do this alone. They need some Democratic senators.

These waffling Democratic senators have demanded a few cosmetic changes — a slight toughening of ethics rules, a modest expansion of law-enforcement authority, and a tad bit of strengthening of financial regulators.

All worthwhile improvements, but they don’t cure the bill’s fundamental defects.

Let me get right to the point. Congress should not enact legislation that further legitimizes and expands an industry whose promised public benefits are zilch while its costs and risks are increasing by the day.

There’s simply no legitimate use for crypto. Its only practical uses are tax evasion, money laundering, fraud, speculation, and crime.

The crypto lobby is large and well-financed. It has already bought off many members of Congress including, sad to say, a number of Democrats.

The parent company of Crypto.com has so far donated tens of millions to MAGA Inc. — Trump’s giant PAC, to support candidates who embrace Trump’s agenda — and is pushing for this “Clarity Act” legislation that would free crypto from securities laws.

There’s no lobby on the other side to guard small investors who are losing their shirts on crypto, or to guard the public against the crime, money laundering, and human trafficking that crypto facilitates.

The crypto lobby says blockchain technology and digital assets will foster innovative companies, create new payment systems, strengthen small businesses, generate wealth, and expand opportunities for younger Americans.

Bullsh*t. There’s no evidence of these benefits. Even if crypto did any of these things, crypto’s costs and risks significantly exceed them.

Aren’t Trump’s crypto conflicts of interest evidence enough?

Isn’t the Ponzi scheme he created sufficient proof of how many people will get snookered?

The CLARITY Act would narrow the authority of the Securities and Exchange Commission over digital assets and give authority over crypto to the Commodity Futures Trading Commission.

This means investors will be shafted and the public will be left in the dark because of the lack of disclosures, the absence of fiduciary obligations, and the deficiency of investor safeguards. All these would apply under federal securities law, but none of these exist under laws governing futures contracts.

In other words, the CLARITY Act would give crypto even more cover. It would make crypto even more opaque. It would allow even more tax evasion, more money laundering, more fraud, more speculation, more ripoffs, and more crime.

I have no hope for Republican politicians. They’ve already sold their souls to Trump and the crypto lobby. But shame on any Democratic senator who votes for this abomination.

I’m going to be watching tomorrow’s vote carefully. I’ll report back to you with the names of any Democratic senators who support this abominable bill.

It’s well worth your time to phone your senators — Republican or Democrat — and tell them NO to the CLARITY Act. The congressional switchboard is (202) 224-3121. You can call this number to be directly connected to the office of your specific senators.

Again, a crucial procedural cloture vote is scheduled for tomorrow. The vote requires 60 senators to advance the cryptocurrency framework. Republicans can’t do this alone; they need the support of a few Democrats. Please phone now.

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