Lummis Adds Ethics Curbs to Advance Crypto Clarity Act

The Digital Asset Market Clarity Act would divide oversight of digital assets between the Securities and Exchange Commission and the Commodity Futures Trading Commission, creating federal rules for tokens, trading platforms and decentralized finance. The House passed H.R. 3633 by 294-134 on July 17, 2025. Its fate now rests with the Senate, where passage would mark the most consequential rewrite of U.S. crypto market regulation and shape how exchanges, issuers and developers operate.

The Senate Banking Committee advanced the bill 15-9 on May 14, but lawmakers still must reconcile Banking and Agriculture Committee texts and resolve disputes over government ethics, stablecoin yield and protections for DeFi developers. The White House reportedly sent an ethics package to selected Republican senators on July 20, reviving hopes for action. Democrats had not participated in that agreement, however, and leaders face a rapidly narrowing window to assemble 60 votes and secure floor time before the Senate’s August recess.

The U.S. Congress has stepped up efforts in recent years to advance the Digital Asset Market Clarity Act, which seeks to establish a clear regulatory framework for cryptocurrency markets. The bill’s progress is crucial to the global digital-asset industry because it would clarify the respective jurisdictions of the Securities and Exchange Commission and the Commodity Futures Trading Commission. However, ethics rules for market participants and anti-money laundering provisions have long been points of contention between the two parties, delaying the legislative process.

Blockchain Association CEO Summer Mersinger said the bill’s main provisions were nearly complete. She publicly urged lawmakers not to discard the work on the rest of the legislation because of disputes over ethics rules. Following a breakthrough in bipartisan negotiations, the bill could go to a Senate vote as early as the week of July 20, 2026. The pivotal development will directly shape the future strength of U.S. cryptocurrency market regulation.

The US Congress is considering the CLARITY Act, which seeks to clarify regulatory responsibilities for digital assets and trading platforms and reduce legal uncertainty for crypto companies. Senator Cynthia Lummis says clear rules are critical to bringing businesses back to the United States and preserving the country’s leadership in financial technology.

Lummis warned that this week could be the United States’ last critical opportunity to advance the CLARITY Act before 2030. She said China could otherwise write the rules for a new financial era. Negotiations have continued since the Senate returned, but Democrats and Republicans remain divided over provisions covering lawmakers’ ethics and safeguards against bad actors. A vote on crypto market structure could take place as early as August.

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.

The CLARITY Act seeks to define how oversight of crypto assets should be divided between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, making it a key piece of legislation for establishing federal market rules. The bill remains stalled over stablecoin yield provisions, with the crypto and banking industries still divided over interest, rewards and the impact on competition for deposits.

Republican Senator Thom Tillis urged the Senate Banking Committee to delay its review until May to allow more time for negotiations. The committee subsequently scheduled a markup for May 14, while Chairman Tim Scott had hoped to finish the process by May 21. However, the July 4 deadline passed without the bill clearing the hurdle, raising concerns that it may not pass before the November midterm elections.