US Senator Lummis Urges Swift Passage of CLARITY Act to Clarify Crypto Rules

The CLARITY Act seeks to create the first comprehensive US market structure for digital assets, defining when tokens should be treated as securities or commodities and dividing oversight between the Securities and Exchange Commission and Commodity Futures Trading Commission. Its significance extends beyond jurisdictional lines: negotiations over stablecoins and decentralized finance could determine whether Congress can deliver durable rules for an industry still operating under fragmented enforcement and guidance.

The Senate majority leader has moved to initiate a procedural vote, positioning the bill for a possible full-chamber vote as early as mid-September. The White House has pledged to push CLARITY across the “finish line” in September, but resistance is mounting. Senator Ruben Gallego has urged colleagues not to rush the measure, Galaxy cut its estimated odds of passage to 10%, and the CFTC and SEC are exploring joint regulatory steps should Congress fail to act.

U.S. crypto oversight has largely evolved through enforcement by the Securities and Exchange Commission and the Commodity Futures Trading Commission, leaving the industry seeking clearer statutory rules. Former New York Governor Andrew Cuomo said the CLARITY Act could provide a critical bridge between digital-asset markets and traditional finance, with implications for America’s ability to compete in financial innovation.

Cuomo warned that the United States is falling behind other markets in establishing crypto regulation and said the CLARITY Act “has to pass,” urging Congress to move quickly. The available report did not specify a vote date or any monetary figure. Attention now turns to whether the bill can secure sufficient congressional support and how its final language would divide regulatory authority over digital assets.

The Digital Asset Market Clarity Act (H.R. 3633) would establish the first broad U.S. market-structure framework for crypto, drawing regulatory lines between the Securities and Exchange Commission and the Commodity Futures Trading Commission and setting rules for digital commodities and trading platforms. The House passed the measure 294-134 on July 17, 2025. The Senate is negotiating its own text, and any changes would require further House action, making timing central to whether President Donald Trump can receive a final bill in 2026.

Senate Majority Leader John Thune filed cloture on the motion to proceed before the chamber left for its August 2026 recess, setting a 2:15 p.m. vote for Sept. 15. Advancing the bill will require 60 votes, while negotiators still have to settle provisions covering public officials’ crypto conflicts, stablecoin rewards, decentralized finance and illicit-finance safeguards. September also brings government-funding work and other competing priorities. With the Nov. 3 midterm elections approaching, another delay could leave too little floor time to reconcile the Senate and House versions this year.

The CLARITY Act aims to create the first federal market regulatory framework for U.S. digital assets, chiefly by defining the respective jurisdictions of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). If enacted, the bill would affect token classification, trading-platform compliance and investor protection. It is also a key part of the Trump administration’s effort to institutionalize cryptocurrency policy.

White House crypto adviser Patrick Witt said officials were pushing to complete the legislation by July 4, 2026. The Senate Banking Committee is expected to hold a markup in May before sending the bill to the Senate floor in June. However, four disputed issues — including stablecoin yield mechanisms and ethics provisions for public officials — still require a bipartisan compromise. The estimated chance of passage has fallen below 50%, while one reporter said the legislative process could make meeting the deadline difficult.

The CLARITY Act aims to clarify how oversight of crypto assets is divided between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. The dispute centers on whether the Blockchain Regulatory Certainty Act, or BRCA, should exempt DeFi developers who do not control user assets, determining whether software developers must assume the responsibilities of financial intermediaries.

As of July 19, 2026, bipartisan Senate negotiations had broken down over an amendment providing a BRCA enforcement exemption, despite claims that lawmakers had reached 99% agreement. The legislative window is only about eight weeks. The White House will hold talks with law enforcement groups, but no compromise has emerged on the key provision. The bill could move to separate votes by the two parties, making it unlikely to clear the Senate threshold.

The U.S. Congress is considering the Clarity Act, which would expand the Commodity Futures Trading Commission’s authority over digital asset markets. Brookings Institution fellow Aaron Klein said shifting responsibilities without a corresponding increase in enforcement resources would undermine investor protection and market order.

Klein warned that regulation could become little more than a formality if Congress grants the CFTC new powers without providing adequate funding and staff with digital asset expertise. Reports did not specify the additional budget, staffing levels or a firm timetable for deliberations, making the bill’s eventual resource allocation critical to its effectiveness.

The Clarity Act is a key U.S. congressional effort to provide greater regulatory certainty for crypto assets. It aims to establish a federal regulatory framework for payment stablecoins and clarify rules governing issuance, reserve assets and regulatory jurisdiction. Because stablecoins are widely used in trading and payments, the bill’s trajectory will affect compliance costs and market strategies across the industry.

The U.S. House of Representatives recently held a markup session on the Clarity Act, reviewing and debating the bill provision by provision. Despite disputes among lawmakers over some clauses, the measure advanced to the next stages of the legislative process. Existing reports did not disclose the exact date of the meeting, the vote tally or any amounts involved. The timing of a full House vote and Senate consideration remains to be seen.

The U.S. Digital Asset Market Clarity Act, or CLARITY Act, aims to delineate the regulatory authority of the SEC and CFTC and establish rules for blockchain networks, tokens and trading platforms. The House passed the bill by a vote of 294–134 in July 2025, seeking to reduce regulatory uncertainty and the risk of the industry moving offshore.

The Senate Banking Committee advanced a related bipartisan version on May 14, 2026. It must next be reconciled with the Agriculture Committee’s version before going to the full Senate for a vote. Andreessen Horowitz’s a16z crypto subsequently said clear rules could foster domestic innovation and preserve the dollar’s position. At the time, the U.S. Dollar Index stood at 99.27, up 1.28% over the previous 30 days.

The CLARITY Act seeks to establish a US crypto-asset market structure framework and clarify the division of regulatory authority between the Securities and Exchange Commission and the Commodity Futures Trading Commission. If the bill reaches the full Senate, it would typically need at least 60 votes to advance, making bipartisan cooperation critical to its prospects of becoming federal law. Current polling shows that most voters support clear cryptocurrency rules.

Coinbase Vice President of Policy Kara Calvert said at Consensus 2026 that the Senate Banking Committee could take up the bill as early as the following week. The committee subsequently scheduled a markup for May 14 and voted to advance the CLARITY Act. The bill must still clear a full Senate vote, while lawmakers' dispute over crypto-asset ethics rules for government officials could affect the final timetable and bipartisan support.

US cryptocurrency regulation has long relied on securities and commodities laws as well as regulators’ discretion, leaving the boundaries around token classification and developer liability unclear. Nonprofit advocacy group Coin Center says the CLARITY Act is intended to establish a framework for classifying digital assets and provide statutory protections for noncustodial blockchain developers, determining whether the industry can operate under predictable rules.

As of July 20, 2026, the CLARITY Act and related blockchain legislation remained stalled in the US Senate, with provisions including stablecoin yield among the disputed issues. No specific amount is involved. Coin Center warned that unless Congress explicitly limits regulatory discretion, future administrations could change their enforcement stance and take tougher measures against cryptocurrency companies and developers.