Lummis: CLARITY Act Framework 'Is Not Working' as Senate Stalls

Sen. Cynthia Lummis (R-WY) said the current U.S. regulatory framework for digital assets “is not working” for the industry, consumers or law enforcement, pressing the Senate to pass the CLARITY Act before its August recess.

Lummis made her case from the Senate floor, arguing that the patchwork of existing rules harms companies, holders, and law enforcement. She has repeatedly urged colleagues to act, warning that delay would kill the bill for the year and leave crypto custody rules exposed as the industry scales.

The Digital Asset Market Clarity Act, formally H.R. 3633, would divide oversight of digital assets between the SEC and CFTC. The Senate begins its August recess on August 8, and Majority Leader John Thune has not scheduled floor time for the bill. If it fails to pass, debate resumes in September, but the legislative window narrows before midterm elections.

Prediction markets now place the odds of CLARITY becoming law in 2026 at about 30%, down sharply from over 80% in February. The bill needs 60 votes in the Senate; Republicans hold 53 seats, requiring at least seven Democrats to cross over. Opposition includes Sen. Elizabeth Warren, who argues the bill weakens consumer protections.

Crypto industry groups, including Coinbase, Ripple, Kraken, and Circle, have urged passage, warning that continued uncertainty pushes innovation and jobs offshore. Lummis ties urgency to consumer safeguards, noting the bill’s custody and disclosure requirements are needed to close gaps exploited by bad actors.

With floor time unscheduled and the recess deadline near, the bill’s fate rests on Thune’s decision. A delay to September would keep the bill alive but push a final vote closer to the midterm campaign season, reducing legislative bandwidth.

Source: https://news.bitcoin.com/crypto-news/lummis-clarity-act-not-working-senate-stalls/