Senator Bernie Sanders (I-Vt.) and actor-turned-crypto critic Ben McKenzie have urged lawmakers to oppose the proposed CLARITY Act, arguing that the legislation would weaken oversight of the cryptocurrency industry.

Gambling, Not Investing

In a discussion focused on cryptocurrency regulation on July 30, Sanders said Congress could soon vote on the CLARITY Act and called the bill an important moment for digital asset policy.

However, McKenzie described cryptocurrency as an asset class primarily used for speculation. He argued that most retail participants treat it as a form of gambling rather than investing.

Cryptocurrencies lack traditional fundamentals such as cash flows, products or services, according to McKenzie.

He claimed the industry’s profits largely accrue to insiders, exchanges and token issuers rather than average investors.

"The people that win over and over again are the people that issue these cryptocurrencies and the people that run the crypto exchanges," McKenzie said.

Criticism Of The CLARITY Act

McKenzie argued that the CLARITY Act would create a lighter regulatory framework for digital assets by shifting much of the oversight from the SEC to the CFTS.

He claimed the CFTC has significantly fewer resources than the SEC and said the legislation would provide the crypto industry with special treatment compared with traditional financial firms.

McKenzie also criticized the bill for not including ethics provisions that would prevent elected officials from profiting through crypto-related businesses while in office.

Campaign Spending Concerns

Sanders and McKenzie also criticized the crypto industry’s political spending.

McKenzie claimed crypto-related political action committees spent roughly $240 million during the 2024 election cycle and have continued to spend heavily during the current election cycle.

The industry’s campaign strategy involves supporting candidates favorable to crypto legislation while opposing those viewed as hostile to the sector.

Sanders argued that such spending reflects broader concerns about the influence of wealthy special interests on U.S. elections.

McKenzie also alleged Trump’s crypto businesses generated substantial personal income while raising concerns about foreign investment and potential conflicts of interest.

He further argued that the CLARITY Act does not adequately address those concerns.

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