Senator John Kennedy Dismisses Cryptocurrency’s Role In US Economy At Senate Hearing

At a Senate Banking Committee hearing titled "The Affordability Agenda," Digital Chamber CEO Cody Carbone argued that the digital asset industry could help solve affordability problems in the United States, including through faster and cheaper transactions and "competitive pressure" on existing payment systems.

“Japan has spent nearly a decade quietly integrating cryptocurrencies into its financial infrastructure”

Bitget

Indiana Senator Tim Banks asked Carbone about the costs related to foreign remittances compared to US dollar-pegged stablecoins, while Louisiana Senator John Kennedy largely dismissed Carbone’s testimony.

Cointelegraph

Kennedy said, "I love cryptocurrency, but I don't think that's the problem with our economy," and Carbone’s remarks centered on the US Senate moving forward on the Digital Asset Market Clarity (CLARITY) Act, which the banking committee advanced in May.

The Cryptonews.net account says the full chamber is expected to vote on the legislation in a matter of weeks, but it adds that as of Tuesday, no floor vote was scheduled in the Senate.

It also notes that lawmakers are calling for additional ethics provisions that could complicate passage, and that gambling industry groups asked the Senate to clarify that the legislation would not allow the US Commodity Futures Trading Commission (CFTC) to oversee sports betting in prediction markets.

In Japan, Crypto Crusaders founder Levi Rietveld highlighted an institutional shift tied to XRP, saying Japan’s National Business Corporate Pension Fund is moving to allocate 1% of its total assets into cryptocurrencies.

Rietveld framed the move as a pattern where pension funds "are always going to start small with these risk-on assets," drawing a comparison to early institutional interest in technology stocks.

Crypto Briefing

He also described XRP’s role in the infrastructure of future financial transactions, calling it "the plumbing" and saying, "We want people to be using it every single day, but have no idea that they’re actually using it at all," in his view of quiet adoption.

The Bitget report says XRP traded at $1.14 at the time of Rietveld’s commentary, falling from highs of $1.33 in early June.

It adds that Rietveld estimated that 99% of the global population knows nothing about these developments, positioning the gap between institutional activity and public awareness as the opportunity he expects to drive later price growth.

As Congress moves through crypto-related legislation, Les Affaires reports that American banks oppose an expansionist push from the cryptocurrency sector, warning that the Senate’s examination of the CLARITY Act could siphon deposits from traditional banks.

“Senator Kennedy dismisses cryptocurrency’s role in US economy during affordability hearing The Louisiana Republican waved off the Digital Chamber CEO's pitch for crypto's economic benefits during a Senate Banking Committee session focused on consumer costs The crypto industry walked into a Senate hearing about affordability hoping to make its case”

Crypto Briefing

The outlet says the CLARITY Act authorizes cryptocurrency exchanges to pay interest to stablecoin holders, and it quotes ICBA CEO Rebeca Romero Rainey asking, "If they lose those deposits, where will the resources come from to finance these loans?"

Les Affaires also cites an American Bankers Association warning that $6.6 trillion of funds held in traditional institutions are "at risk," and it describes how the text was stripped of the stablecoins’ interest clause before the cryptocurrency lobby counterattacked.

In a separate Senate context, Les Echos reports that Kevin Warsh told the Senate that cryptocurrencies are "already an integral part of our United States financial services sector, yes," in response to Senator Cynthia Lummis.

The stakes in the sources include investor protections and regulatory structure, with Les Affaires warning that new technologies can allow companies to bypass bank regulation and supervision, and with Les Echos pointing to an annual Fed survey where 8% of American adults reported using cryptocurrencies in 2024.