Warren Backs Crypto Legislation but Rejects CLARITY Act

Republican Senator Cynthia Lummis, a longtime cryptocurrency advocate known as the “Bitcoin Senator,” is pressing Congress to establish clearer rules for US digital-asset markets. The CLARITY Act is intended to define the regulatory roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission, addressing uncertainty that crypto companies say has constrained investment, product development and compliance planning in the world’s largest capital market.

Lummis said the legislation had reached a “now or never” moment as the Senate prepared for a pivotal cloture vote. The final text incorporates more than 120 requests from Democrats, including new ethics provisions designed to address concerns over conflicts of interest. As of Sept. 16, 2026, the measure’s next test is the procedural vote to end debate, which requires at least 60 senators’ support before the bill can advance toward final consideration.

The Digital Asset Market Clarity Act would define how the Securities and Exchange Commission and Commodity Futures Trading Commission oversee crypto markets, giving the CFTC a central role in digital commodities while preserving SEC authority over some primary-market transactions. The House passed H.R. 3633 by 294-134 on July 17, 2025, but a revised Senate measure needs 60 votes to clear procedural hurdles. That makes Democratic support — and safeguards against conflicts involving elected officials’ crypto businesses — central to its prospects.

Senate Republicans released a merged draft on July 22 that would bar senior federal officials, including President Donald Trump, from issuing or sponsoring digital assets. The proposal gives Trump one year to divest or place businesses in a blind trust, relies on the Justice Department for enforcement and expires when the next president takes office. Democratic Senator Ruben Gallego on July 23 called it “not a serious effort” and said he would work with Republican Senator Thom Tillis on alternative language. The Senate’s August 8 recess is squeezing the timetable.

The CLARITY Act would create the first comprehensive U.S. framework for digital-asset markets, dividing oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. The House passed its version 294-134 in July 2025, but Senate passage requires 60 votes. That makes Democratic support essential and has put President Donald Trump’s crypto interests, including his family’s World Liberty Financial venture and memecoin, at the center of negotiations.

Senate Republicans released a 616-page draft on July 22, combining versions approved by the Banking and Agriculture committees. Coinbase and the Crypto Council for Innovation welcomed the regulatory clarity. The ethics language would bar public officials and their spouses from issuing or sponsoring digital assets, but excludes other relatives, assigns enforcement solely to the Justice Department and expires in January 2029. Senators Angela Alsobrooks and Ruben Gallego demanded stronger safeguards, while the American Bankers Association and other banking groups warned stablecoin rewards could drain deposits and constrain local lending.

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 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.