CLARITY Act News: Why Arthur Hayes Opposes Bill Ahead of Senate Vote?
CLARITY Act News: Senate Vote Nears, Crypto Political Spending Rises
The crypto industry's political muscle is on full display this week. Coinbase-backed advocacy group Stand With Crypto has endorsed 32 incumbent U.S. House candidates ahead of the November midterm elections, according to Reuters. The move comes as the CLARITY Act — the industry's top legislative priority — remains stalled in the Senate, and it signals that crypto advocates intend to use the ballot box to keep the bill's momentum alive.
All 32 Candidates Supported the CLARITY Act in the House
Every candidate receiving the endorsement voted last year in favor of the House passing the CLARITY Act, a group that includes Tom Emmer, Bill Huizenga, Ritchie Torres, and Josh Gottheimer, among others.
The list spans both parties, underscoring that support for the bill was not a partisan affair when it cleared the House. Some of the endorsed lawmakers, including Arizona's Juan Ciscomani and Pennsylvania's Brian Fitzpatrick, are running in competitive districts where outside backing could matter most in a close race.
Stand With Crypto Has More Than 3 Million U.S. Supporters
This was launched by Coinbase in 2023 to build a grassroots political movement around crypto-friendly policy. The group says it now counts over 3 million registered U.S. advocates, and its executive director, Mason Lynaugh, described this cycle as proof the crypto voter bloc has real organizing capacity, not just size.
This round of endorsements builds on six candidates the group backed back in March, expanding its footprint well beyond its 2024 debut cycle.
Why the CLARITY Act Is Important for the Crypto Industry
The CLARITY Act latest update is designed to draw clearer lines between which digital assets fall under the Securities and Exchange Commission's authority and which fall under the Commodity Futures Trading Commission's.
For an industry that has spent years operating in a gray zone of overlapping and sometimes contradictory oversight, a defined regulatory framework would give exchanges, token issuers, and investors more certainty about the rules they need to follow.
CLARITY Act Faces Delays Ahead of the September Senate Vote
While the bill passed the House, it has hit resistance in the Senate. A vote is expected around September 15, and how that vote goes could shape the next phase of crypto regulation in the U.S. If the bill stalls again, some analysts believe regulators like the SEC and CFTC may step in with their own rulemaking rather than wait for Congress to act.
Industry Has Already Spent Nearly $200 Million on Midterms
Political spending from the crypto sector has scaled up sharply. The industry poured roughly $170 million into congressional races during the 2024 cycle, much of it through the Fairshake super PAC, and many of the candidates it backed won. For the 2026 midterms, the industry has already committed close to $200 million, most of it again channeled through Fairshake, reinforcing crypto's growing weight as a political spender in Washington.
Arthur Hayes Calls for Trump to Veto the CLARITY Act
Not everyone in crypto is cheering the bill on. Former BitMEX CEO Arthur Hayes argued in a recent Altcoin Daily interview that President Trump should veto the CLARITY Act if it reaches his desk.
Hayes contends the legislation mainly benefits venture capital firms and compliance-focused companies that lobbied for it, rather than genuine innovation in the space, and that it risks building a regulatory moat that shuts out smaller competitors.
He pointed to Bitcoin's history of operating without formal U.S. legislation as evidence the industry doesn't need this particular bill to thrive, arguing instead that liquidity conditions and Federal Reserve policy are the real drivers of crypto bull markets.
On price, Hayes said Bitcoin could reach $126,000 by year-end, and floated a scenario where a sharp shock — comparable to a forced liquidation event — could send it briefly down to $35,000 before rebounding. He's also notably bullish on Ethereum, suggesting a target range of $20,000 to $30,000 if Bitcoin were to reach $200,000.
Bernstein Says Circle Can Grow Even Without the CLARITY Act
Wall Street research firm Bernstein has taken a more measured view of the bill's importance. In a note reiterating its Outperform rating and $140 price target on Circle Internet Group — implying roughly 59% upside — Bernstein's analysts said Circle's growth story doesn't hinge on the CLARITY Act passing in September. Instead, they point to stablecoin payment adoption, on-chain capital markets, tokenization, and emerging AI agent payment use cases as the real growth drivers.
The firm noted USDC supply climbed about $1.7 billion in the past week alone, snapping nearly six months of sideways movement, and estimated annualized stablecoin transaction volume is tracking near $17 trillion through July, up roughly 60% year-over-year.
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What the CLARITY Act Could Mean for Crypto Markets Next
With the Senate vote looming in mid-September, the CLARITY Act sits at a crossroads. A successful vote could hand the industry its second major legislative win after last year's GENIUS Act on stablecoins.
A failed vote could instead accelerate regulatory action from the SEC and CFTC, while keeping political spending and voter mobilization — like the Stand With cryptocurrency push — as the industry's main lever of influence.
Stand With Crypto has said it plans to release its Senate endorsements closer to Election Day, a list likely to draw even more attention given the bill's fate rests with that chamber.
Disclaimer: This article is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency markets are highly volatile, and legislative outcomes are uncertain. Readers should conduct their own research and consult a licensed financial advisor before making investment decisions.
