Senator Cynthia Lummis has again urged lawmakers to advance the CLARITY Act, a bill designed to create clearer rules for U.S. digital asset markets. She described the legislation as a move that would “lay the foundation for the financial services of the 21st century.” Lummis added: “The CLARITY Act is this generation’s contribution to that legacy. Let’s finish the job.” Her call comes as Congress faces a narrow window before the August recess.
Senate Timing Becomes the Main Hurdle
The CLARITY Act has already passed the House and cleared the Senate Banking Committee. It now requires a full floor vote in the Senate to move closer to becoming law. Time is the biggest challenge. If the Senate fails to act before the August break, the bill’s timeline could stretch into 2027. That makes July a crucial month for digital asset policy in Washington. Lummis has opened a final review period for updated bill text, with a revised version expected around July 4. Lawmakers and industry groups will have one last chance to examine changes before a potential floor push.
Key sticking points remain: stablecoin yield products, ethics rules, and decentralized finance (DeFi) oversight. Senate leaders need enough bipartisan support to move the bill through a divided chamber. Lummis is pressing for speed, but party alignment remains uncertain.
SEC and CFTC Roles Would Be Redrawn
The CLARITY Act would clearly split oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the bill, a token treated as a security falls under SEC jurisdiction, while a token classified as a commodity goes to the CFTC. The SEC keeps authority over investment contract assets, while the CFTC gains a larger role in digital commodity spot markets, including some exchange activities.
The bill also establishes rules for trading platforms, brokers, and crypto exchanges. These include separating customer assets from company funds, a measure aimed at reducing risks seen in past exchange failures. Supporters say the bill replaces enforcement-led policy with a written rulebook. Critics argue the text lacks sufficient user protections and provides too little detail for DeFi oversight.
Fraud Funding Built Into the Bill
The CLARITY Act includes enforcement funding. A separate report indicates the bill would set aside $150 million specifically for crypto fraud investigations. Lummis said the money would help agencies “track down scammers and bad actors in the digital asset space.” This provision may appeal to lawmakers who want stronger fraud controls paired with market rules. Some digital asset firms would also face Bank Secrecy Act obligations, raising reporting standards for platforms that handle customer assets and transactions.
For now, the CLARITY Act remains close to a Senate test but has not yet become law. Lummis continues to push lawmakers forward, while crypto firms, banks, and policy groups await the final text and the next vote.